Evergrande Is Suspending Trades Friday, Here’s What That Means
Read the full article by Casey Wagner here: 9/17/21
“China Evergrande Group is sitting on approximately $300 billion in debt”
“The company is set to miss one principal payment and is still considering the possibility of an extension”
Greg Foss, executive director of strategic initiatives at Validus Power Corp was quoted saying “The question is how much liquidity is in the system to deal with something like this because, again, an event like this does not cause contagion unless people start redeeming assets and unwinding leverage.”
Many insiders believe this is something that can cause a trickle down effect into the world economy being that real estate is the most valuable thing people have to their names.
Evergrande has reportedly already made $8 billion unloading shares of stock.
This trend is a very alarming thing to shareholders and investors the firm has issued debt securities too.
The contingency plan for the firm is to try to unload as much real estate as possible offering massive discounts, which in turn can alter the value of the entire Chinese real estate market just by how much the supply and demand will be altered.