Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
Why Everyone Is So Concerned About Evergrande?

Why Everyone Is So Concerned About Evergrande?

Information is not investment advice

You have probably heard of China’s company Evergrande which can’t pay its bills and may collapse. But why does this company have such a strong impact on the global markets? Bitcoin crashed by 10% in 24 hours on bankruptcy fears for China’s Evergrande Group and then dropped the next day as well. What? Bitcoin and China’s real estate company? How are they even connected? Let’s find out.

What is Evergrande?

Evergrande is one of the biggest real estate companies in China. It became famous because of its residential property: it "owns more than 1,300 projects in more than 280 cities" in China. The real estate giant is also engaged in electric vehicles, theme parks, and even a soccer team.

It confuses everyone that this giant company will soon be unable to meet its obligations! It has resulted in chaos in China. Evergrande’s customers and business partners aren’t satisfied: some want their houses built, others want their capital back, and what about the firm’s employees? You got it: complete chaos.

How big is Evergrande’s collapse?

It is said that Evergrande owes nearly $300 billion, which accounts for 6% of the total debt for China’s property sector—to creditors, investors, and other stakeholders.

Market fear

Well, investors remembered the 2008 housing crisis and were afraid that this situation with Evergrande is similar to it and may lead to the overall crisis as well. What does happen usually when fear engulfs the markets? Right, investors start selling riskier assets to park their capital in a safer place and wait out the storm. As a result, the stock market crashed.

Tech outlook

The Honk Kong’s Hang Seng Index (HK 50) has been already having a tough time because of China’s pressure on tech stocks such as Alibaba and Tencent, but Evergrande’s news pressed the stock even more. If the HK 50 drops below the low of September 20 at 23,860, it may drop to one-year lows of 23,160.

HK50Daily.png

Remember that with FBS you can open both buy and sell positions.

LOG IN

Similar

The GBP setups ahead of CPI

The performance of the British pound against other majors has grabbed a lot of attention during the last couple of weeks.

Popular

Choose your payment system

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later