China-based real estate company Evergrande is on the verge of bankruptcy with $300 billion in debt. While it is thought that the company, which is supposed to pay on September 23, cannot make this payment, it is thought that a possible bankruptcy will have a domino effect for all economies. So what awaits us?
Eyes and ears of the world as Turkey grapples with its own internal issues Chinese‘also. Because the developments in the country reveal that a new economic crisis may break out. The reason for this is with $300 billion in debti.e. when it was just a company, it owed as much as Greece. Evergrande named company. 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 make us think we are 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 make a bond interest repayment on September 23, but it seems that this payment can’t be done. 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 fell so far. 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 also 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 in all matters, is silent on Evergrande. meaning when you can’t giveIn the statements made by Philip Tse, Director of Real Estate Research in China, “Investors may be worried about companies with high debt 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.‘ statements were made.
What if Evergrande goes bankrupt?
Economists, all data “strong bankruptcyThey think that if Evergrande, who shows “does what is expected, that is, goes bankrupt, it will have a domino effect. In other words, first the Asian markets and then all the stock markets around the world will be adversely affected by the situation. All companies in a critical situation.” face bankruptcy and exchange rates are among the expectations of economists.
Of course, this situation is already very fragile. Turkey’s economy It 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, determinant of everything it will be…