Evergrande isn’t about to let a little bad press stop its hustle! Last Sunday, the Chinese real estate developer announced to the world it has fired up the heavy equipment to resume work on more than ten projects in Shenzen and five other cities in the southern province of Guangdong.
The announcement came just days after Evergrande Chairman Xu Jiayin said in a meeting that the only way to overcome the company’s ballooning debt crisis is through the resumption of work and construction.
Through its official WeChat account, the company went on to say that resuming its construction projects will help to restore confidence in China’s real estate sector after it noticeably cooled last month on fears of a potential 2008-like financial contagion sparked by its collapse.
why it matters
Evergrande's debt crisis has caused major speculation over the integrity of China's real estate market. The fear is that a loss of faith in Chinese borrowers could spread to other markets around the world, leading to a major drop in lending that would halt economic progress. Talk about being an influencer!