China’s Real Estate Giant Falls Into Bankruptcy!

Things are not going well with the Dragon country China. On one hand, people are not showing interest in getting married and having kids no matter how many incentives the government and private entities are giving. China, which used to compete with the US once, is struggling with a massive drop in youth population.

As if that was not enough, the real estate sector has been battling a big crisis and the efforts made by the government are not paying off. Companies irrespective of their sizes are falling into the crisis trap. As an example of this, a massive company went bankrupt.

China's real estate giant Evergrande Group which is taking care of various projects across the cities in China is said to have initiated the bankruptcy process in the US. Saying that it has been going through tough times, the real estate company is said to have applied for Bankruptcy protection in the US.

The big company announcing bankruptcy sheds light on the problematic situation of the real estate sector. Just like the rest of the nations, China also went through a tough time and is yet to come out of it.

Seeing that the real estate sector is in a crisis, the Chinese government came up with some measures like cutting mortgage rates and lending financial aid to the companies so that they would go for more constructions to boost the sector.

But all these did not stop the real estate company from falling into the trap and applying for bankruptcy. As per the information, Evergrande Group has a massive loan of more than $300 billion.