On Monday, Evergrande Group stocks tumbled as the property developer snowed under its crushing debt crunch.
The company sharply declined 16.93% or 0.43 points to $0.27 per share, far from its peak of $0.31 per share in February.
Evergrande is the second-largest developer in China and the 122nd largest group in the world.
Moreover, the Chinese property developer holds a current market capitalization of $3.58 billion and a revenue of $78.44 million.
In line with the firm’s huge size, its potential fallout could hurt China’s economy and the other markets.
Consequently, the debt crunch caused angst to the investors that sprung protests about debt repayments.
Moreover, the Shenzhen-based company approaches the brink of default risk as it crumbles under the pressure of almost $300.00 billion liabilities.
Accordingly, China Evergrande weighed on the possible collapse of the Chinese property market as the woe spread in the industry.
In addition, the Chinese government reined in the borrowing costs of real estate developers.
Furthermore, New World Development Company plunged 11.69% or 4.00 points to $3.93 per share.
Similarly, Country Garden Holdings fell 6.31% or 0.43 points to $0.84 per share.
Also, Evergrande’s distress spilled to the financial industry as slower economic growth implicated the country.
Guangzhou R&F Properties Co Ltd plunged 8.21% or 0.35 points to $0.55 per share.
Likewise, Ping An Insurance declined 7.52% or 4.10 points to $6.47 per share.
Then, China Merchants Bank plummeted 11.19% or 7.10 points to $7.24 per share.
Meanwhile, experts mentioned that a quick rebound of the Chinese market is impossible even if Evergrande Group avoids its fallout.
Moreover, China’s prolonged regulatory scrutiny on various sectors could make its stock market trade lower.
Asian Market Slipped as Evergrande Group Plunged
Furthermore, the Asian market slipped as the property developer Evergrande Group continued to plunge.
In Hong Kong, the Hang Seng index dropped 3.19% or 794.29 points to $24,126.47 per share.
Also, the Asia Dow index inched down 0.33% or 10.41 points to $3,164.00 per share.
Likewise, the S&P BSE Sensex index stumbled 0.27% or 160.39 points to $58,855.50 per share.
Then, the FTSE Straits Times index plummeted 0.84% or 25.59 points to $3,045.53 per share.
Elsewhere, Australia’s S&P/ASX 200 index fell 2.02% or 149.60 points to $7,254.10 per share.
Meanwhile, China, Japan, and South Korea markets are closed today for holidays.