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How Evergrande Grew and Grew, Despite Years of Red Flags
by kleinbl00

    Investors long thought that Evergrande was safe because Beijing would bail it out to avoid roiling the housing market and causing losses for homeowners. That was why investors were willing to stick with Evergrande despite the warnings.

    “That extensive track record is why you got flights to risk in moments of financial stress rather than flights to safety,” said Logan Wright, an analyst at the China-focused research firm Rhodium Group, who has written extensively on the topic. “This dynamic was unsustainable.”