December 4, 2021

Taylor Daily Press

Complete News World

Stocks and Bitcoin in the Red Due to the Imminent Bankruptcy of Chinese Real Estate Giant Evergrande |  Money

Stocks and Bitcoin in the Red Due to the Imminent Bankruptcy of Chinese Real Estate Giant Evergrande | Money

MoneyStock markets around the world fell on Monday. Investors are concerned about the imminent bankruptcy of major Chinese real estate developer Evergrande and its consequences for the Chinese and global economy. Remarkably, bitcoin is also losing value. Bitcoin doesn’t always respond with exchanges, but now it seems to be.




Investors were shocked News of the company’s desire to pay its creditors with discounted real estate instead of cash. Evergrande is struggling with a mountain of debt of around 260 billion euros and investors fear bankruptcy could cause a domino effect on the Chinese economy and beyond. Because international financial institutions also loaned money to the group.

Lehman Brothers

In Hong Kong, Evergrande stock is down more than 10%. Beijing does not appear to be planning to step in and save Evergrande from destruction at this time. The Chinese government has recently intervened in many sectors to ensure greater distribution of wealth and the creation of more “common wealth”. Now that strategy may not fit into trying to rescue a megalomaniac real estate company that has been neglectful of taking on huge debts. In 2008, the US government’s refusal to bail out investment bank Lehman Brothers triggered the financial crisis.

Stock markets are falling

Like most stock exchanges in Europe, the stock market in Brussels also fell. As the end of trading approaches, prices have rebounded somewhat. At the close of trading, the Bel20 index was still 1.31 percent in a loss at 4,079.04 points.

See also  The highest version of Lucid Air has a driving range of 837 km - picture and sound - news

The Dow Jones Industrial Average lost 1.8 percent at 3,3970.47 points. The broad S&P 500 index fell 1.7 percent to 4,357.73 points, and the Nasdaq Technology Index lost 2.2 percent to 14,713.90 points.

The unfinished Guangzhou Evergrande Football Stadium in Guangzhou. © AFP

As in Europe, commodity companies in particular have struggled amid concerns that China will buy less steel and other raw materials due to problems in the property market. But other large funds have also been hit by economic concerns. In the financial sector, the picture was also negative due to fears of strikes on banks due to the impending collapse of Evergrande. On Wall Street, the prices of major banks such as Citigroup, Bank of America and Wells Fargo rose about 4 percent.

The Evergrande logo at Shenzhen headquarters.

The Evergrande logo at Shenzhen headquarters. © AFP

Bitcoin drops along with stocks

Bitcoin price has also fallen to its lowest level since early August. Like the stock markets, the digital currency appears to be responding to the impending collapse of Chinese real estate giant Evergrande.

Bitcoin’s value is down nearly 9 percent in 24 hours. according to CoinMarketCap On Monday early evening (Belgian time), the bitcoin price reached over €37,000. This site monitors several platforms on which cryptocurrencies are traded. Two weeks ago on September 7, Bitcoin was still worth over €44,000.

Bitcoin doesn’t always respond to stock exchanges, but now it seems that way. British cryptocurrency trader GlobalBlock points to this, for example. Perhaps this is because the digital currency is becoming more integrated into the financial market worldwide.

Queen Piece

But there was also other news on Monday that the crypto markets might react to. Coinbase, the largest cryptocurrency exchange in the United States, is under pressure from the authorities and has decided not to release a specific product that allows people to make money by lending tokens. Coinbase previously announced the product, but the company has come under fire from the US Securities and Exchange Commission (SEC). He even threatened to sue Coinbase if the company went ahead with its plans.

Read more:

“Anyone who starts building or renovating their home this year will suffer from the hangovers of their life”: our inflation money expert (+)

‘Looks like it’s going to be an agricultural year for stocks’: Our experts discuss the best investment strategy for this fall (+)