China's real estate giant Evergrande files for US bankruptcy protection as part of one of world's biggest debt restructurings

Chinese property giant Evergrande has filed for bankruptcy protection in the US amid a deepening real estate crisis in China. It will allow the heavily-indebted company to protect its assets in the US as it works on a multi-billion dollar deal with creditors.

Evergrande defaulted on its huge debts in 2021, which sent shockwaves through global financial markets. The move comes as problems in China's property market add to concerns about the world's second-largest economy. China Evergrande Group made the Chapter 15 bankruptcy protection filing in a New York court on Thursday. Chapter 15 protects the US assets of a foreign company while it works on restructuring its debts.

Earlier this month, Beijing said that China's economy had slipped into deflation as consumer prices declined in July for the first time in more than two years.

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