Quick links: United States | Major Indices | Indices Future | Real-time Commodities | Webinars | Coronavirus | Economic Calendar
7 Dec 2021
Investors Less Apprehensive even as China Evergrande Continues to Falter
The Index Today
The Index Today — The China Evergrande Group has found itself in the brink of financial ruin yet again as the extent of the crisis and the resulting repercussions remain obscure to investors and experts.
Earlier this year, the company was ensnared in a property exigency with 300 billion-dollar liabilities and over 1,300 real estate schemes that left several smaller developers bankrupt. Although the debt-ridden company could pay up $82.5 million in bonds which has long been overdue, they revealed that it may not be possible due to a lack of funds.
However, the resulting financial consequences have been controlled and restricted to the country alone, making the repercussions less serious on an international level. According to Liqian Ren, a WisdomTree director, "Contagion happens when you have something where nobody knows who owns what.” She contends that the China Evergrande Group will most probably default, and may be set on the same path as that of the HNA Group which is currently under reconstruction following approval from its creditors.
©Photo: Noel Celis | AFP | Getty Images