China's Evergrande Crisis: A Real Threat to U.S. Stocks?

A looming debt default by Chinese real estate titan Evergrande is sparking fears of global contagion and knocking stocks from their perches.

Evergrande building china evergrande crisis us stock market
(Image credit: Getty Images)

Many investors had probably never heard of Evergrande (EGRNY, $10.90) prior to Monday morning. But once the massive and massively indebted Chinese real estate company sparked a selloff sweeping from Asia through Europe and on to the U.S., anxious chatter about contagion and a potential global credit crisis seemed unavoidable.

Evergrande, you see, is facing a liquidity crisis. And it very well might default on coupon payments owed to foreign bondholders due in just a matter of days.

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Dan Burrows
Senior Investing Writer, Kiplinger.com

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.