China Evergrande: Lessons and Enlightenment from the Collapse Storm China Evergrande Group was taken by the state authorities for a comprehensive purge of debt problems, including the takeover of Evergrande Life and the arrest of Evergrande Wealth executives

China Evergrande: Lessons and enlightenment under the storm of bankruptcy

China Evergrande Group was subjected to a comprehensive purge by state officials over its debt problems, including the takeover of Evergrande Life and the arrest of Evergrande Wealth executives. Evergrande has long relied on a highly leveraged operating model, and eventually fell into the crisis of broken capital chain. Evergrande's debt problem has aroused social concern, and the government has taken resolute action to clean up the chaos in the financial market and maintain social stability. As the founder of Evergrande, Xu Jiayin will face doubts and accountability from investors, suppliers and society. Governments and enterprises should strengthen regulatory and governance systems to prevent similar risks and crises.