Evergrande Default - Crisis To Affect Australia And Asia Pacific?

Here is our next video about Evergrande default. Evergrande is one of the largest companies in China - a property developer, that owns more than 1,300 projects in more than 280 cities across the country. The company has also expanded its business into other areas like electric vehicles, media, financial services, sports team ownership, health services and theme parks.

Evergrande default risk started when it started borrowing huge amounts of money to finance its growth. The Evergrande debt led to the company becoming the most indebted one in the world, owing more than $300 billion in various forms.

The Evergrande crisis can also be explained by the Chinese government getting increasingly concerned about the level of debt linked to the country's real estate market, so it started policies last year to curb it.

As a result, the company stopped taking in more debt and started selling properties at discounts to increase cash coming in. That led to a reduction in the value of some Evergrande developments which further deepened the Evergrande debt crisis.

As the real estate market makes up more than a quarter of China's economy, which is the second largest in the world, there are fears of Evergrande default contagion or that the Evergrande debt problem could spark a domino effect on the wider Chinese economy.

Watch‌ ‌the‌ ‌full‌ ‌video‌ ‌for‌ ‌our‌ ‌take‌ ‌on‌ the Evergrande default impact and‌ ‌a‌ ‌deeper‌ ‌insight‌ ‌into‌ ‌the Evergrande crisis explained.‌ ‌Drop‌ ‌us‌ ‌a‌ ‌line‌ ‌in‌ ‌the‌ ‌comments‌ ‌with‌ ‌your‌ ‌thoughts‌ ‌on‌ Evergrande default 2021.
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00:00 Intro
02:18 Evergrande Sell-off
07:50 Technical analysis
12:16 Recap

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