Evergrande and the end of China's 'build, build, build' model

Valued at US$41 billion last year, the spectacular unravelling of the property group exposes deep flaws in Beijing’s growth strategy.

Evergrande Centre in Shanghai.PHOTO: EPA-EFE

(FINANCIAL TIMES) A dramatic video filmed in the south-western city of Kunming in August hints at the scale of China's property bubble. Onlookers can be heard screaming in awe as 15 high-rise apartment blocks are demolished by 85,000 controlled explosions in less than a minute.

The unfinished buildings, which formed a complex called Sunshine City II, had stood empty since 2013 after one developer ran out of money and another found defects in the construction work. "This urban scar that stood for nearly 10 years has at last taken a key step toward restoration," said an article in the official Kunming Daily after the demolition.

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