Inexplicable success is as unnerving as failure. At least it should be. Evergrande Real Estate Group was the best performing of Hong Kong-listed China property stocks last year, scoring a total return of almost 150 per cent. Second place went to China Vanke, up a mere third. Indeed, Evergrande was the top performer in an index of 100 Hong Kong listed mainland stocks that includes far sexier technology companies such as Tencent and Apple supplier AAC Technologies.

Part of the reason lies with leverage: Evergrande ranks second in Hong Kong’s China real estate sector for indebtedness. As of June, net debt to equity stood at more than 120 per cent. Its cash outlay for interest — including capitalised debt payments — consumed half of its earnings before interest and tax in the first half of 2015.

Despite the debt, the company has been expanding rapidly — often outside of its core business. It has interests ranging from cinemas to football to food. Diversification may appeal to management, given the uncertainties surrounding Chinese real estate. Not that any of this has diluted Evergrande’s commitment to property. Over the past two years it has spent at least $10bn buying property assets around China, according to Dealogic. In December it spent $3.2bn acquiring projects from New World Group companies and jewellery retailer Chow Tai Fook — funded in part by a $1.5bn, 9 per cent perpetual bond purchased by the sellers.