China Evergrande Group Liquidated, Leading to Real Estate Crisis in China
After failing to convince, the court ordered China Evergrande Group into liquidation, exacerbating the real estate crisis in China.
Economic Challenges for Investors
The company’s valuation has dropped more than 90 percent in the past year, signaling a challenging time for Evergrande investors including banks, property buyers, and other real estate companies. The Chinese government is also fighting the impact of negative inflation, at about -0.3 percent.
Domino Impact on Global Markets
The company’s debt is four times larger than El Salvador’s gross domestic product (GDP) and equal to that of Chile, Romania, and Finland and was a major employer in China. The company sourced building materials from various countries, affecting global logistics.
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The collapse of Evergrande was a painful lesson for investors who favored real estate over Bitcoin. With demand for digital assets rising, one of Hong Kong’s leading fund managers, Harvest Global Investment, has applied to offer exchange-traded funds (ETF).
Hot Take
Bitcoin whales have been accumulating more coins, signaling rising demand for digital assets.
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