China’s Evergrande crisis, which recently threatened the entire global economy, still continues to be primarily a problem.
China’s statement that it would not save the company in the Evergrande incident caused the global crisis to deepen even more and eyes were turned to today for an important development.
Evergrande Crisis Continues
In a recent statement by the People’s Bank of China, Evergrande of the Group He stated that the risks are now due to his own mismanagement and his blind desire to grow.
The statements of the People’s Bank of China, stating that short-term risks will not affect the general economy and the long-term situation, were not felt at the weekend as the market was closed. Now it can be seen that China has clearly abandoned Evergrande.
In the statement made by the Evergrande team on Friday, it was emphasized that the company did not have the power to meet the financial obligations, considering the current liquidity. Thus, the company has declared that it may not be able to pay its debts on time.
The expected crisis for Evergrande has been officially confirmed and it is expected to affect the whole world, especially China. Real estate prices in China fell 0.2% in October, making it the biggest drop since 2015. In the continuation of this, it is stated that all sectors can be affected by the chain effect.
While Bitcoin, the leading cryptocurrency, rose to $ 49,000 at the weekend, it went down due to the Chinese market that was opened as of now.
*Not Investment Advice.