Beijing (AFP)

In 25 years, Evergrande has risen to the top of the Chinese real estate sector before collapsing under debt of 260 billion euros.

A look back at an emblematic saga of the development of private companies in the now second largest economy in the world:

1996 - Debut with a bang

A former steelworker, Xu Jiayin, founded the group in Shenzhen (south) by banking on the rapid urbanization of the country.

The 323 apartments in his first real estate project are sold in half a day.

2009: IPO

Evergrande lands on the Hong Kong Stock Exchange, raising funds that will allow it to diversify into sectors ranging from agribusiness to electric cars.

The company bought the Canton football club (south) in 2010 and spent a fortune to buy foreign players.

2017 - Top of the bill

Xu Jiayin becomes within a year the richest man in Asia with a fortune estimated at 45.3 billion dollars (38.3 billion euros at the current price).

A construction site for the Evergrande group in Zhumadian, in central China, September 14, 2021 JADE GAO AFP

2018 - First alert

In November, the central bank listed the real estate juggernaut on its list of conglomerates to watch because of excessive debt and whose bankruptcy would put the economic system at risk.

2020 - "Three red lines"

In August, the regulator instituted limits on the debt in real estate in the form of three prudential ratios which reduce the recourse to borrowing.

Evergrande sells 28% of its property management activities and begins to sell property at a large discount.

June 2021 - End of off-plan purchases

In June, the regulatory authority banned the sale of a property until the work was completed, while Evergrande traditionally used deposits from buyers to finance its growth.

According to experts, Evergrande keeps 1.4 million homes sold but not fully built.

August 2021 - Legal battles

An advertiser sues Evergrande for unpaid bills, before a series of complaints from suppliers and subcontractors.

Several sites are stopped.

Third day of gathering of despoiled owners in front of Evergande headquarters in Shenzhen, September 15, 2021 Noel Celis AFP

The major international rating agencies lower their rating, further complicating the use of credit for Evergrande.

September 2021 - Events

The 14th, Evergrande recognizes that he may not be able to honor all his commitments, even if he assures that he is not on the verge of bankruptcy.

Demonstrations by dozens of cheated owners are taking place in front of the group's headquarters in Shenzhen (south) and other cities in China.

© 2021 AFP