Chinese home builders & Big multinational companies tumbled,China Economy Collap_low.mp4
Angry home buyers are waiting on as many as 1.6 million apartments to be completed. Suppliers of cement, paint and rebar are owed more than $100 billion in payments. Workers are panicking that loans they made to their employer cannot be repaid.
Evergrande Group was once China’s most prolific developer, its cranes dotting China’s skylines. But now it is buckling under the weight of more than $300 billion in #debt,. What’s at stake is more than the fate of a single company: Evergrande’s troubles have raised fears that China’s residential and commercial #property #market, which drives up to a third of the world’s second-largest economy, could crumble.
The panic set off a global chain reaction on Monday, pushing stock markets down as shares of #Chinese home #builders and large #multinational companies tumbled. On Tuesday, Evergrande’s shares and bonds fell again after a dire forecast about its fate from S&P Global Ratings: “We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the #economy.” On Thursday, Evergrande has an $83.5 million interest payment it is likely to miss, which would cause more market turmoil.