Evergrande is China’s 2nd largest real estate and construction service company and was once China’s largest real estate company and a pioneer in the housing sector in China. But now the whole company is in bankruptcy as a result of the massive debt and trade collapse.
Not only China and Hong Kong stock markets but also international markets have plummeted due to the bankruptcy of Evergrande. Thus only the top 500 richest people in the world have lost $ 135 billion.
So how much does Evergrande owe ..?
Evergrande Company
Founded in 1996, Evergrande has been building and trading buildings in China at a time when it has focused on construction and development, borrowing large sums from banks. Thus growing rapidly.
$ 305 billion in debt
But due to mismanagement over time, Evergrande has a debt of about 2 trillion yuan, or $ 305 billion, due to various orders from the Chinese government. The bankruptcy of the company will affect not only the Chinese real estate market but also the Chinese and Hong Kong stock markets.
Chinese Government Orders
The Chinese government has imposed more than 100 strict regulations on real estate loans and land purchases over the past few years in order to reduce the debt burden and provide people with affordable housing. For this reason Evergrande’s business has been severely affected and is currently mired in debt.
Lehman Brothers
International market experts predict that if the Chinese government fails to save Evergrande, the international economy will be hit harder than it was by the 2008 Lehman Brothers bankruptcy in the United States.
11-year decline
Shares of Evergrande plunged 11 years in response. Shares of Evergrande plummeted to just 2.27 Hong Kong dollars in today’s trade. In 2024 alone, Evergrande’s share price fell to 83.95 percent.
SINIC HOLTICS
Shares of SINIC Holdix, one of China’s largest real estate companies, plunged 87 percent in just one day to just 0.50 Hong Kong on Monday, echoing Evergrande.
People’s Bank of China
The People’s Bank of China last week made a short-term investment of about $ 14 billion in Evergrande, according to a Chinese government order. But the problem is not solved.
Vulnerability to anyone
The bankruptcy of Evergrande with $ 305 billion in debt will have a major impact on the chain of banks that lent to the company, private investors who invested in the company, retail investors, investors in the investment company, and foreign companies investing and trading in China.
Reliance and HDFC
If 100 crore is 200 crore then the problem can be overcome which is $ 305 billion. In short, Reliance Empire, the largest trading conglomerate in India, and the HDFC Group are both bankrupt at the same time. This is what is currently happening at Evergrande in China.
Top 500 Richest
The top 500 richest people alone lost $ 135 billion worth of assets yesterday in a single day due to the trade impact that hit Evergrande on Monday.
Elon Musk
Elsewhere, Tesla’s Elon Musk lost $ 7.2 billion and Amazon’s Jeff Pyos lost $ 5.6 billion. Not only this but yesterday the Asian market as a whole collapsed and today it has escaped the downturn.
