Evergrande Group’s Bankruptcy: Rise and Fall
Research Article
Open Access
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Evergrande Group’s Bankruptcy: Rise and Fall

Wenhui Ye 1*
1 University College Dublin
*Corresponding author: j11021865@126.com
Published on 10 September 2025
Volume Cover
AEMPS Vol.198
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-245-4
ISBN (Online): 978-1-80590-246-1
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Abstract

The primary goal of this study is to gain a comprehensive understanding of Evergrande's bankruptcy, exploring the circumstances leading up to it, the ensuing impacts, a comparative analysis with other organizations, and the application of game theory to unfolding events. This investigation will particularly focus on the insights that other financial sector organizations can derive from Evergrande's experience. One major cause of Evergrande Group's financial distress is the unchecked expansion of its diversification policy, which strained its capital chain. Additionally, government regulations have tightened around the real estate sector, reducing available investment sources. Moreover, increasing market competition has gradually eroded Evergrande's market share, leading to profitability and brand reputation declines. This article underscores that Evergrande's bankruptcy offers crucial lessons for other real estate companies, providing them with valuable practical guidance. This paper contributes to the field of financial studies by highlighting the critical importance of developing a robust understanding of risk management, implementing effective risk control mechanisms, mitigating bankruptcy risk, and ensuring that hazards remain within manageable limits.

Keywords:

Diversification, Debt Crisis, Leverage, Lawsuit, Game Theory.

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Ye,W. (2025). Evergrande Group’s Bankruptcy: Rise and Fall. Advances in Economics, Management and Political Sciences,198,234-246.

References

[1]. Almeida, D. Dionisio A. Ferreira P. et al. (2022) ‘A giant falls: The impact of Evergrande on asian stock indexes’, Journal of Risk and Financial Management, 15(8), p. 326. doi: 10.3390/jrfm15080326.

[2]. Delouya, S. (2023) China’s evergrande files for bankruptcy | CNN business, CNN.

[3]. Evergrande Group©all rights reserved. Evergrande Group (no date) Evergrande Group - About Evergrande.

[4]. Jiao, J. (2022) ‘Internal Control in the real estate industry and its financial risk management’, Academic Journal of Business & amp; Management, 4(18). doi: 10.25236/ajbm.2022.041810.

[5]. Oh, P. (2023) Reflection on the Evergrande group crisis, the cause and the impact., Medium. Available at: https: //medium.com/datafrens-sg/reflection-on-the-evergrande-group-crisis-the-cause-and-the-impact-b94812854f78.

[6]. Katanich, D. (2024) ‘Enough is enough’: With $300 billion in debt, court says it’s time to liquidate China’s Evergrande, euronews. Available at: https: //www.euronews.com/business/2024/01/29/enough-is-enough-with-300-billion-in-debt-court-says-its-time-to-liquidate-chinas-evergran.

[7]. National Bureau of Statistics of China (2024) National Economy Witnessed Momentum of Recovery with Solid Progress in High-quality Development in 2023, National Economy witnessed momentum of recovery with solid progress in high-quality development in 2023. Available at: https: //www.stats.gov.cn/english/PressRelease/202401/t20240117_1946605.html

[8]. Zhang, X. (2024) China Residential Market Report 2023: Greater China, Cushman & Wakefield. Available at: https: //www.cushmanwakefield.com/en/greater-china/insights/china-residential-market-report-2023

[9]. The Straits Times (2021) Several Chinese banks restricting credit to Evergrande on debt risk, The Straits Times. Available at: https: //www.straitstimes.com/business/property/several-chinese-banks-restricting-credit-to-evergrande-on-debt-risk.

[10]. Yifei, C. (2022) Research on Financial Risk Analysis and Early Warnings  in the Chinese Real Estate Industry- Evergrande Real  Estate as an Example, https: //scholar.google.com/.

[11]. Weidong He. (2023) Based on Evergrande Group’s Debt Default Case Analysis---Constructing Multiple Regression Model to Explore the Debt Paying Ability of Real Estate Enterprises with High Debt Default Risk. MSEA 2023 Proceedings of the 2nd International Conference on Mathematical statistics and economic Analysis, Nanjing, China, May 26-28, 2023.

[12]. Jing Yang. (2024) Beyond Evergrande: Rethinking Real Estate Market in China and the USA for Long Term Growth and Sustainability. https: //dspace.mit.edu/handle/1721.1/155990

[13]. Zexuan Wang, Kesu Ye, Dianying Zhu (2022) Financial Crisis Analysis of Evergrande Group from the Perspective of Game Theory.

[14]. He, L. (2024) Biggest fraud in Chinese history? Beijing accuses Evergrande of inflating revenues by $78 billion | CNN business, CNN. Available at: https: //edition.cnn.com/2024/03/19/business/china-evergrande-fraud-csrc-investigation-hnk-intl/index.html.

[15]. Chan Ho-him, Kaye Wiggins. (2024) China Evergrande liquidators launch legal action against PwC.

[16]. Evergrande: Why should I care if China property giant collapses? (2024). https: //www.bbc.com/news/business-58579833

[17]. Li, J. and Qin, Y. (2024) ‘An analysis of the causes of Evergrande Debt Crisis’, SHS Web of Conferences, 188, p. 01030. doi: 10.1051/shsconf/202418801030.

[18]. Global Times. (n.d.). China unveils 25 specific measures to bolster financing for private enterprises. Copyright 2021 by the Global Times. https: //www.globaltimes.cn/page/202311/1302561.shtml

[19]. Lu, L. and Keller, A. (2022) ‘Is it China’s Lehman Brothers moment? Unveiling Evergrande debt crisis, financial risks, and regulatory implications’, Law and Financial Markets Review, 16(1–2), pp. 133–144. doi: 10.1080/17521440.2022.2150524.

[20]. Wang, William Han, "Contagion: China Evergrande Group’s Collapse and its impact on Belt and Road Stock Indices" (2023). CMC Senior Theses. 3148. https: //scholarship.claremont.edu/cmc_theses/3148

[21]. Abdul Karim, M.M. (2021) ‘Failure of Lehman Brothers’, Journal of Finance and Investment Analysis, pp. 1–14. doi: 10.47260/jfia/1041.

[22]. He, L. (2024b) Troubled Chinese property Giant Country Garden delays earnings | CNN business, CNN.

[23]. Davis, M.D. and Brams, S.J. (2024) Game theory: References & edit history, Encyclopædia Britannica.

[24]. Evergrande Chair Xu Jiayin detained by police  | Taiwan News | Sep. 29, 2023 16: 49.

[25]. Ma, B. (2022). How Evergrande Defaulted: Positive Feedback Mechanism Subject to the Debt-Fueled Model in Chinese Real Estate Market. Advances in Economics, Business and Management Research/ Advances in Economics, Business and Management Research. https: //doi.org/10.2991/aebmr.k.220502.075

[26]. Reporter, G. S. (2024 March 19). Evergrande: Chinese firm and founder fined over $78bn fraud claims. The Guardian.

References

[1]. Almeida, D. Dionisio A. Ferreira P. et al. (2022) ‘A giant falls: The impact of Evergrande on asian stock indexes’, Journal of Risk and Financial Management, 15(8), p. 326. doi: 10.3390/jrfm15080326.

[2]. Delouya, S. (2023) China’s evergrande files for bankruptcy | CNN business, CNN.

[3]. Evergrande Group©all rights reserved. Evergrande Group (no date) Evergrande Group - About Evergrande.

[4]. Jiao, J. (2022) ‘Internal Control in the real estate industry and its financial risk management’, Academic Journal of Business & amp; Management, 4(18). doi: 10.25236/ajbm.2022.041810.

[5]. Oh, P. (2023) Reflection on the Evergrande group crisis, the cause and the impact., Medium. Available at: https: //medium.com/datafrens-sg/reflection-on-the-evergrande-group-crisis-the-cause-and-the-impact-b94812854f78.

[6]. Katanich, D. (2024) ‘Enough is enough’: With $300 billion in debt, court says it’s time to liquidate China’s Evergrande, euronews. Available at: https: //www.euronews.com/business/2024/01/29/enough-is-enough-with-300-billion-in-debt-court-says-its-time-to-liquidate-chinas-evergran.

[7]. National Bureau of Statistics of China (2024) National Economy Witnessed Momentum of Recovery with Solid Progress in High-quality Development in 2023, National Economy witnessed momentum of recovery with solid progress in high-quality development in 2023. Available at: https: //www.stats.gov.cn/english/PressRelease/202401/t20240117_1946605.html

[8]. Zhang, X. (2024) China Residential Market Report 2023: Greater China, Cushman & Wakefield. Available at: https: //www.cushmanwakefield.com/en/greater-china/insights/china-residential-market-report-2023

[9]. The Straits Times (2021) Several Chinese banks restricting credit to Evergrande on debt risk, The Straits Times. Available at: https: //www.straitstimes.com/business/property/several-chinese-banks-restricting-credit-to-evergrande-on-debt-risk.

[10]. Yifei, C. (2022) Research on Financial Risk Analysis and Early Warnings  in the Chinese Real Estate Industry- Evergrande Real  Estate as an Example, https: //scholar.google.com/.

[11]. Weidong He. (2023) Based on Evergrande Group’s Debt Default Case Analysis---Constructing Multiple Regression Model to Explore the Debt Paying Ability of Real Estate Enterprises with High Debt Default Risk. MSEA 2023 Proceedings of the 2nd International Conference on Mathematical statistics and economic Analysis, Nanjing, China, May 26-28, 2023.

[12]. Jing Yang. (2024) Beyond Evergrande: Rethinking Real Estate Market in China and the USA for Long Term Growth and Sustainability. https: //dspace.mit.edu/handle/1721.1/155990

[13]. Zexuan Wang, Kesu Ye, Dianying Zhu (2022) Financial Crisis Analysis of Evergrande Group from the Perspective of Game Theory.

[14]. He, L. (2024) Biggest fraud in Chinese history? Beijing accuses Evergrande of inflating revenues by $78 billion | CNN business, CNN. Available at: https: //edition.cnn.com/2024/03/19/business/china-evergrande-fraud-csrc-investigation-hnk-intl/index.html.

[15]. Chan Ho-him, Kaye Wiggins. (2024) China Evergrande liquidators launch legal action against PwC.

[16]. Evergrande: Why should I care if China property giant collapses? (2024). https: //www.bbc.com/news/business-58579833

[17]. Li, J. and Qin, Y. (2024) ‘An analysis of the causes of Evergrande Debt Crisis’, SHS Web of Conferences, 188, p. 01030. doi: 10.1051/shsconf/202418801030.

[18]. Global Times. (n.d.). China unveils 25 specific measures to bolster financing for private enterprises. Copyright 2021 by the Global Times. https: //www.globaltimes.cn/page/202311/1302561.shtml

[19]. Lu, L. and Keller, A. (2022) ‘Is it China’s Lehman Brothers moment? Unveiling Evergrande debt crisis, financial risks, and regulatory implications’, Law and Financial Markets Review, 16(1–2), pp. 133–144. doi: 10.1080/17521440.2022.2150524.

[20]. Wang, William Han, "Contagion: China Evergrande Group’s Collapse and its impact on Belt and Road Stock Indices" (2023). CMC Senior Theses. 3148. https: //scholarship.claremont.edu/cmc_theses/3148

[21]. Abdul Karim, M.M. (2021) ‘Failure of Lehman Brothers’, Journal of Finance and Investment Analysis, pp. 1–14. doi: 10.47260/jfia/1041.

[22]. He, L. (2024b) Troubled Chinese property Giant Country Garden delays earnings | CNN business, CNN.

[23]. Davis, M.D. and Brams, S.J. (2024) Game theory: References & edit history, Encyclopædia Britannica.

[24]. Evergrande Chair Xu Jiayin detained by police  | Taiwan News | Sep. 29, 2023 16: 49.

[25]. Ma, B. (2022). How Evergrande Defaulted: Positive Feedback Mechanism Subject to the Debt-Fueled Model in Chinese Real Estate Market. Advances in Economics, Business and Management Research/ Advances in Economics, Business and Management Research. https: //doi.org/10.2991/aebmr.k.220502.075

[26]. Reporter, G. S. (2024 March 19). Evergrande: Chinese firm and founder fined over $78bn fraud claims. The Guardian.

Cite this article

Ye,W. (2025). Evergrande Group’s Bankruptcy: Rise and Fall. Advances in Economics, Management and Political Sciences,198,234-246.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis

ISBN: 978-1-80590-245-4(Print) / 978-1-80590-246-1(Online)
Editor: Ursula Faura-Martínez
Conference website: https://2024.icftba.org/
Conference date: 4 December 2024
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.198
ISSN: 2754-1169(Print) / 2754-1177(Online)

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