China Evergrande faces £221billion of debt, and one expert has claimed the company's collapse could spark the fall of the financial system. Speaking to Express.co.uk, Dr Marco Metzler from Deutsche Marktscreening Agentur (DMSA), claimed the collapse of the Evergrande is the first domino of the eventual destruction of the world financial system. Due to the size of the property market, estimated at $55trillion (£40trillion), he claimed the collapse of China's property market, will create a worse financial meltdown than what was seen in 2008.

Indeed, the property market when including construction and property-related goods and services, totals 29 percent of China's GDP.

Dr Metzler said: "This is the first domino of the collapse of the market."

He added: "It will be even worse than the 2008 financial crash.

"The market is bigger than what the US was.

"Plus, the supply chains aren’t working and there is inflation.

"If the market doesn’t crash, we will have hyperinflation and that will have the same effect on the economy."

China Evergrande is one of the largest companies in the world and one of the largest in the country's property market.

Due to increased restrictions on foreign lending, Evergrande has faced several bond interest repayments.

JUST IN: UAE investment to 'boost Britain's green industrial revolution'

He also claimed China's economy is now heading for a recession.

He added: "People say you can kick the can down the road but we’re at the end of the line.

"It’s a matter of time, we have high inflation and low interest.

"Inflation driven by lack of goods and China has an energy problem.

"It’s even worse than 2008."

There are fears over the financial market, as if such a large company were to declare bankruptcy, it could spook lenders across the world.