Turmoil in global markets: Risk on China's largest real estate company
Evergrande carries interest burden of Rs 968 crore this month: 128 banks, 121 NBFCs to go bankrupt
If the company goes bankrupt, there will be a recession, millions of dollars will be stuck and the demand for metals and cement will decrease.
Sensex plunges 525 points, erodes investors' wealth by Rs 3.49 lakh crore, Nifty falls 188 points
MUMBAI: The company, which has a total debt of about Rs 305 billion (Rs 22,57,000 crore), is worried that it will not be able to repay the interest on its bonds on time this month. .
The company is due to pay 8. 8.35 crore, or Rs 617 crore, in interest this week. If that fails, there is a risk of default on the company. After this the company dt. An additional 4 4.75 crore or Rs 351 crore interest is due on September 29.
Worldwide stock markets fell today due to the possible default of Evergrand, China's largest real estate company. If the company goes bankrupt in China's real estate market, there could be a recession and a multi-million dollar crisis, which could lead to a drop in demand for metals and cement and a recession in the economy, which has been slowing down since the Covid crisis.
Along with EverGrand, Sink, China's second-largest real estate company, is also in danger today. Real estate stocks traded sharply lower in Hong Kong today. Shares of Sink fell 87 percent to just 50 cents in one fell swoop today. Shares of Evergrand fell 11 percent today to a 12-year low.
The impact of this phenomenon is being felt in stock markets all over the world. Stock markets in India, the United States, Britain, France and Hong Kong were hit by the sell-off. The dollar rose as part of a move to safety due to the sell-off.
Stock markets in Australia and India fell one per cent to two per cent. Stock markets in Europe are down two per cent and the US is down 1.5 per cent. Copper prices have fallen by 2.5 per cent on the London Metal Exchange.
The Indian stock market was also rocked today on the back of these reports. The BSE Sensex fell 525 points to 58,491 and the Nifty fell 188 points to 17,396 on selling pressure from Chomer. Investors' wealth eroded by Rs 3.49 lakh crore to Rs 255.47 lakh crore after the Sensex crash.
China spent 14 14 billion to avoid adverse effects
Realizing the potential crisis of Evergrand, China has poured 14 14 billion into its banking system. The purpose of this exercise is to avoid the adverse effects of an evergreen if it goes bankrupt.
The People's Bank of China on Friday poured 90 billion yuan (about બ 14 billion) through seven-day and 14-day reverse purchase agreements, the highest since February. In addition, the bank today for the first time this month increased short-term liquidity of 10 billion yuan in a single day in the banking system.
EverGrand is China's largest real estate company
EverGrand is China's largest real estate company. The company, which has 1,300 projects in 280 cities across the country, has a 4% share of the Chinese real estate market. The company has secured loans from 128 banks and 121 non-banking finance companies to operate on such a large scale. The company's ongoing projects are valued at એક 1 trillion or Rs 74 lakh crore.
The memory of Lehman of 2008 came to mind
The real estate sector in the United States was responsible for the 2008 global financial crisis, which culminated in the global recession in September 2008 when Lehman Brothers went bankrupt. This memory is refreshed.
Real estate and infrastructure construction have played a major role in China's economic growth. Along with this market, consumption of steel, cement, copper and other metals has also increased. Demand for these metals could fall if China's largest real estate market company fails to repay its debt, leading to a recession not only in China but around the world.
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