New Development in Evergrande Crisis: Chinese Government Stepped In

In one of our content that we shared with you last week, a Chinese company, EvergrandeHow Turkey borrowed as much as Greece with 300 billion dollars and what kind of concerns this caused. we told. In that content, we said that the Chinese government could take action, but it was reluctant to do so. A new development is the government support of Evergrande. can be saved it reveals.

The asset management company called Shenyang Shengjing Financial Investment Group has acquired its shares in Shengjing Bank. 19.93 percent he bought. This purchase, which was realized for 9.99 billion yuan, is very important for the resolution of the Evergrande incident. Zira The company named Shenyang Shengjing Financial Investment Group administered by the state.

It’s too early to say for sure

The Chinese government’s holding of Evergrande directly affects the markets. reflected. The company’s stock rose about 15 percent as the acquisition began. However, on an annual basis more than 80 percent The current position of the falling shares is still not at a good point. So it’s pretty hard to say that the crisis has passed. we are in an early period.

If the steps taken by the Chinese government are not enough and Evergrande goes bankrupt, this time starting in China spherical A crisis situation may arise. Because there are thousands of residences that Evergrande, which works on real estate, has already sold to people, but has not even started the construction phase. On the other hand, Evergrande, for construction works countless working with the company. The bankruptcy of this company will first sink its partners in China. Then we can see this situation in other Asian countries, then in Europe and the USA. In other words, global markets, which are already in trouble due to the coronavirus pandemic, with the collapse of Evergrande by domino effect, it can be difficult.