As the real estate developer’s debt crisis is a major test for Beijing, the world is still waiting to see what happens to the troubled Chinese team Evergrande and its great mountain.

The following report from CNN Business covers everything you need to know about Evergrande and how it is now.

What is “Evergrand”?

It is one of the largest real estate developers in China, and the company is one of the largest revenue earners in the world. It is listed in Hong Kong and is headquartered in the southern city of Shenzhen, employing about 200,000 people and indirectly helping maintain over 3.8 million people. Work every year.

The group was founded by Chinese billionaire Xu Jian, also known as Hui Ka Yan in Cantonese, who was once the country’s richest man.

Evergrande has made a name for itself in residential real estate, boasting of having “over 1,300 projects in more than 280 cities” across China. In bottles, groceries, dairy and other products throughout China.

In 2010, the company acquired a football team called Guangzhou Evergrande, after which the team developed what is believed to be the largest football school in the world at a cost of $ 185 million.

Evergrande offers its services to tourists through its theme park division, Evergrande Fairyland, a mega project called Ocean Flower Island in Hainan, a tropical province of China commonly referred to as “Chinese Hawaii”.

How did you deal with a problem?

In recent years, Evergrande’s credit has been used to finance many of its projects, and the group has emerged as the most indebted developer in China, with more than $ 300 billion in obligations. This warning came this month. A role that is problematic in finding buyers for some of its assets.

Goldman Sachs analysts say it is difficult to find an accurate picture of the company’s structure and its recovery. In a recent note, they cited “a significant problem in the operations of the Evergrande Group and a lack of adequate information on the company’s assets and liabilities.”

In a recent note, Mark Williams, chief economist at the capital economy, said the Evergrande accident was “the biggest test the Chinese financial system has faced in many years.” “The roots of Evergrande’s problems, and the most advanced developers, are entering an era of continuous decline in residential real estate demand in China … Evergrande’s current decline is focused on the impact of the default wave on property. Developers are China’s growth,” he explained.

How is Evergrande trying to move forward?

On Wednesday, Evergrande Shenzhen said in a statement to the stock exchange that issues related to the repayment of local yuan bonds had been “resolved through negotiations” and that Evergrande had not explained the terms of payment in its report.

On September 14, Evergrande announced that it had called in financial advisers to assess the situation, and warned that although these companies were engaged in expeditious exploring “all possible solutions”, nothing was guaranteed. It said there had been “no definite progress” in the search for investors and “was not sure if the group could complete such a sale”.

How do investors react?

Earlier this month, both Fitch and Moody’s downgraded Evergrand’s credit rating due to its liquidity problems. “We consider a kind of default possible,” Fitch said in a recent note. This situation is further worrying investors in China, and stocks in Hong Kong, New York and other major markets are suffering from fear of infection from Evergreen. Reduces Chinese growth.

What can happen next?

The Chinese government seems to have begun to intervene; Over the past few days, the People’s Bank of China has been pouring a little cash into the financial system, helping to increase short-term cash flow and calm the situation. According to Bloomberg, the net liquidity of banks has reached 460 billion yuan ($ 71 billion), and it is clear that the authorities are being meticulous in trying to keep the peace.

Last week, Fu Lingwei, a spokesman for China’s National Bureau of Statistics, acknowledged the difficulties faced by “some major real estate companies”, state media reported. Without naming Evergrande directly, Fu said the real estate market in China is stable this year, but the impact of recent events on the growth of the industry as a whole should be noted.