Commentary Is China’s real estate-based economy on the brink of collapse? A big part of it just might be, if not all of it. Evergrande, China’s second largest real estate developer and the world’s most indebted property developer, is in danger of defaulting on loan service payments. Much of the debt is held by Chinese banks, driving concerns of a collapse in China’s huge and heavily indebted financial sector. But that’s not all. A significant amount of Evergrande’s debt ($800+ million) is held by foreign interests as well. Given China’s extensive economic ties with the rest of the world, the fear is that the collapse of such a large firm will have economic consequences for both China and its foreign bondholders. A Lehman Brothers Event? Neither are unreasonable fears. Parallels have been drawn between the financial crisis in 2008, which was triggered by the collapse of Lehman Brothers, a notable …