Evergrande Another Domino in a Nosediving Chinese Economy

Commentary The collapse last week of China’s largest property developer, Evergrande, marked the inevitable conclusion to a saga that exposes the flaws in communist economic model. Evergrande has been on life support for the past two years with enormous debts that required state intervention if it were to survive. But even in China, there is a limit to the extent that municipal and provincial governments can absorb debt. The consequence is that a Hong Kong court ordered the liquidation of the property giant. Evergrande is not the first property developer to collapse. Some 50 other entities have also met their demise, the consequence of an unsustainable property bubble that has resulted in entire cities of unoccupied multi-storey apartments....