Asian stocks hit by the volatility of Evergrande’s default concerns

What’s New in Evergrande Real Estate Group Ltd

Asian stocks shook between profits and losses in the wake of Wall Street’s worst four-month fall in one day as investors prepared for a possible default by Chinese real estate developer Evergrande.

Japanese stocks plunged on Tuesday after closing due to a Monday holiday, and the benchmark Tokyo Stock Price Index Evergrande liquidity crisis.. Hong Kong’s Hang Seng Index fell more than 3% on Monday and then fell 1.4% before returning to flat.

Evergrande, the world’s most debt-rich developer, fell by more than 5%, reversing the initial rise in morning trading after falling more than 10% on Monday. This year’s stock price has fallen by more than 85%.

NS Evergrande confusion Markets have shaken this week as investors around the world are working on the prospect that Beijing may allow leverage-fueled group defaults. Such a move would overturn long-standing expectations that Chinese authorities would intervene to protect systemically important but financially deprived businesses.

The burst scattered sparks Sale of world stocks On Monday, European stocks plunged, pushing down all but 50 S & P 500 stocks, down 1.7% that day. The Nasdaq Golden Dragon Index, a major Chinese company listed on the US, fell 5.4%.

Pressure on real estate developers, who were responsible for most of China’s economic growth, along with most of Asia’s high-yield dollar bond issuance Important deadline Evergrande on Thursday faced interest payments of $ 83.5 million on one of its bonds.

City analyst Judy Chan warned that Beijing could probably do it. Reduce spills Due to Evergrande’s debt crisis, more than 40% of the assets of Chinese banks were related to the real estate sector.

Mentioning market turmoil after the Lehman shock, “The Evergrande crisis is likely to maintain profits to prevent systematic risks for policy makers to buy time to resolve debt risk. I can’t see it. ” 2008 brothers.

However, she added that the credit risk of exposure to debt-bearing Chinese developers was highest for lenders such as Minsheng Bank, Everbright Bank and Ping An Bank, a subsidiary of the insurance group. peace, Monday’s stock price fell 8.4%. Hong Kong-listed China Minsheng Bank and Everbright Bank have both fallen about 6% this week.

China-led crunch ghosts also have long-term uncertainty Lead the Bank of Japan Purchase an exchange-traded fund for the first time since June to support the market.

Despite the barbarism of sectors such as industries that were perceived to be vulnerable to China’s real estate crisis, dealers said Japan was trading as more heaven.

NS Leadership race Takeo Kamai, who is responsible for the execution of CLSA, said that deciding the possibility of a huge stimulus with the next prime minister was to provide solid support to the Tokyo market. Prolonged Chinese equities could also persuade global funds to rotate their investment in Japan, he added.

The Chinese market remained closed due to Tuesday’s public holiday, but in Singapore, the FTSE China A50 futures used to hedge exposure to shares listed on Shanghai and Shenzhen had three sessions on Monday. After dropping%, it was flat in the morning trading.

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Asian stocks hit by the volatility of Evergrande’s default concerns

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