As China’s property crisis plagues its economy and financial system, is a ‘Lehman Moment’ looming?

Two years after the bond default by one of China’s biggest real estate developers created the first shock waves, Beijing’s promise that everything is under control is becoming increasingly harder to sell to investors.

Fears jumped further this summer as ailing developer China Evergrande Group then reported a combined loss of 812 billion yuan (US$112 billion) for 2021 and 2022 – a figure higher than its total earnings since it was established in 1996.