Eyes and ears of the world as America grapples with its own internal issues China. Because the developments in the country reveal that a new crisis can occur if we are under the control. The reason for this is has a debt of 300 billion dollars, meaning that when it was only a company, it had as much debt as Greece Evergrande
A company named . Let’s come together, the biggest issue in China’s history, which has caused concern in global markets. with the banking crisis let’s take a closer look at the developments that suggest that it is facing.
Evergrande was one of the largest real estate companies in China. In the hands of the company, which is currently open for sale 1.4 million residential and commercial areas exists. However, the company cannot melt its stocks. Of course, the company, which had to make huge borrowings in this process, has to pay back the bond interest on September 23, but it seems that this payment will not be able to. Such a situation seems to affect the global markets deeply.
Everyone is nervous
Evergrande’s, so to speak, in China he owes the flying bird. This situation is directly reflected in the stock values of the company. The company, which is traded on the Hong Kong stock exchange, started the day with a sharp decline. The shares of the company, which continue to lose value throughout the day, 19 percent. While industry sources think that the company will fly the bankruptcy flag, the events experienced have a great impact on the world. worries all investors. In this context, in addition to the Chinese stock markets, there are also withdrawals in the European stock markets and BIST 100. also cryptocurrency markets they have started to shake due to uneasiness.
The Chinese government did not make a statement regarding the Evergrande incident. However, the government announced to the markets on Friday. 14 billion dollars took cash. The interesting thing is that this did not affect the Chinese market in any way. Sector members agree that the government, which is active on all issues, is silent on Evergrande. meaning while unable to give, in the statements made by Philip Tse, Director of Real Estate Research in China, ” Investors may be worried about high debt companies these days and may not look too closely at valuations. Unless the government gives a clear signal on Evergrande or eases restrictions on the real estate sector the decline will continue.“.
What if Evergrande goes bankrupt?
sdollarser, all data ” strong bankruptcy“, they think that if Evergrande does what is expected, that is, it goes bankrupt, it will have a domino effect. In other words, first Asian markets and then all stock markets around the world will be adversely affected by the situation. All companies in critical condition. in danger of bankruptcy and exchange rates are among the expectations of sdollarserine.
Of course, this situation is already very fragile. America sini also seems to affect it deeply. However, it is too early to talk about what might happen. What steps will Evergrande take regarding the payment due on September 23, determiner of everything
It will be . . .