The financial crisis of the Chinese real estate giant Evergrande has been worrying the markets for a while. The fact that many corporate companies own Evergrande bonds fueled the concerns that a possible default could result in a global crisis.
Delays in some payments made the markets nervous today. When we scanned the global agencies, we could not find a definitive and clear statement that Evergrande went bankrupt. Although the sharing of “Evergrande went bankrupt” on social media caused a short-term panic, we saw that the truth of the event was with a lawsuit filed by DMSA.
The German market monitoring agency (DMSA) used the following statements in a statement regarding Evergrande:
“China’s Evergrande Group is officially in default – DMSA is preparing to file bankruptcy proceedings against Evergrande Group.
Evergrande Group again defaulted on interest payments to international investors today. DMSA itself has invested in these bonds and has not received any interest payments until the end of the grace period today. Now DMSA is preparing bankruptcy proceedings against Evergrande and is calling on all bond investors to participate.”
In the statement of DMSA, it was stated that the Evergrande crisis is a threat to global markets and may cause the collapse of the financial system.
Concerns over Evergrande caused US markets to fall. The fact that the pullbacks in Nasdaq reached 1.72% also triggered the pullback in Bitcoin.
We observe that the losses in altcoins are around 5-10%.
Although Evergrande has not yet officially gone bankrupt, delays in payments are making investors nervous. Thereupon, the statement from DMSA seems to have curbed the risk appetite of investors.
The German market monitoring agency (DMSA) has announced that it will file bankruptcy proceedings against Evergrande for failing to receive its payments. The DMSA called on all bondholders to support them.#Bitcoin #cryptocurrency
— Bitcoin System (@bitcoinsystem) November 10, 2021