In an interconnected world, the sight of angry workers and investors besieging a corporate HQ in a far-off Chinese city is enough to have global financial markets asking if a rerun of Lehman Brothers is on the horizon. The debt issues surrounding giant Chinese residential real estate developer Evergrande have caused global stock markets to whipsaw over the past fortnight as investors worry its potential collapse might have a damaging effect on the Chinese economy, the world’s second-largest, and thus impact the fragile post-Covid economic recovery in countries like the U.S. and UK. The commercial real estate sector is relying on that economic recovery to help it recoup some of the ground lost during the coronavirus pandemic. 
Fears that a debt default or total collapse of Evergrande could cause a Lehman-style financial contagion and credit crunch are receding, but investors, including those in commercial real estate, now have another question to address. How will China manage the restructuring of Evergrande, and what…  Read the full story here. | 
