Business

CO2 shortages threaten the UK’s meat supply.Evergrande crisis hits the market – Business Live | Work

Investors are uncertain whether Chinese authorities can contain the fallout from the potential for chaotic collapse of companies with large debts. The situation is even worse as China closes until Wednesday in compliance with the Mid-Autumn Festival.

However, Evergrande’s Hong Kong-listed share fell another 13% as its market capitalization fell to unprecedented levels as the likelihood of bankruptcy increased. The company was expected to pay interest on bank loans on Monday and on Thursday about $ 83.5 million in offshore bonds in March 2022. Failure to make these payments can result in defaults. This is probably because Chinese authorities have already instructed major lenders not to expect repayments.

If the problem ends with Evergrande, it’s not too much of a problem as far as the wider financial markets are concerned. However, this can affect many other companies. Therefore, the risk of transmission can be much wider than the market currently expects. Similarly, much depends on how Chinese authorities respond to this crisis. Will they bail out the company, or will they collapse and make an example?

China has also cracked down on other major sectors of the economy, adding further uncertainty to China’s markets and economy.

CO2 shortages threaten the UK’s meat supply.Evergrande crisis hits the market – Business Live | Work

Source link CO2 shortages threaten the UK’s meat supply.Evergrande crisis hits the market – Business Live | Work

Back to top button