China’s Problems Are Larger Than Evergrande

A woman cries as she and other people gather at the Evergrande headquarters in Shenzhen, China on Sept. 16, 2021, as the Chinese property giant stated that it's facing "unprecedented difficulties," but denied rumors that it's about to go under. Noel Celis/AFP via Getty Images

Commentary

The potential bankruptcy of Chinese real estate company Evergrande is much more than a “Chinese Lehman.” Lehman Brothers was much more diversified than Evergrande and better capitalized. In fact, the total assets of Evergrande outnumber the entire subprime bubble of the United States.