Researcher ORCID Identifier


Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts


International Relations

Reader 1

Minxin Pei

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On September 23rd, 2021, China Evergrande Group failed to pay its $83.5 million interest payment on its US dollar bond with a face value of $2.03 billion. The default raised massive international attention, as it was the largest-ever dollar-bond default by an Asia company. The second-biggest real estate enterprise in China, Evergrande had nearly $78 billion in revenue in 2020 and hundreds of projects in more than 200 Chinese cities. It was also one of the most indebted companies, with $89 billion in debt outstanding in 2021. The liquidity crisis of Evergrande disrupted the whole real estate industry value chain. Many of Evergrande’s housing projects were suspended, and hundreds of people in construction firms were forced to take pay cuts. Evergrande was the epitome of China’s 20-year housing boom and corporate debt binge, and the explosion of the Evergrande crisis marked the bursting of China’s real estate bubble. Evergrande’s default triggered a cascading effect on the Chinese real estate sector. It has set off a spiral of tumbling housing sales, increasing housing companies’ defaults, rising corporate bond yield, and a grimmer investor confidence. The crisis has also posed huge risks to the Chinese banking sector. The implosion of Evergrande raises disturbing questions about the company’s corporate governance, business model, and China’s regulatory regime governing the real estate sector and banking lending. The thesis is a comprehensive case study of Evergrande and China’s real estate industry.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.