Global Markets Sink Amid Growing Fears Of Chinese Real Estate Giant Defaulting
Umer Jamshaid 1 month ago Tue 21st September 2021 | 12:36 AM
Global stock markets recorded losses on Monday amid concerns over China's Evergrande real estate company potentially defaulting on its debts
Hong King's Hang Seng Index plummeted 4.2%, following a drop of 10.2% in Evergrande group's share price, which is traded in the Chinese Index, according to the South China Morning Post newspaper. The price per share for Evegrande group was 2.
In June, Evergrande reportedly admitted that it didn't meet the payment of a commercial paper. Earlier in September, Fitch downgraded Evergrande's long term debt, stating that the Chinese giant was facing a 'high default risk', according to the credit agency's website.
Financial markets worry that a hypothetical default of Evergrande, as well as late payments, could send shockwaves through the Chinese economy, and the crisis could spread to the financial system of the country and create systemic risk in the second largest economy in the world.