Zero Hedge: Hong Kong Stocks Crash, Futures Slide As Markets Finally Freak Out About Evergrande Default Contagion
Well, as we warned, the Evergrande contagion has finally arrived and with China closed for holiday traders are getting out while they can and where they can, and on Monday morning in Asia that means Hong Kong, where Evergrande - which is about to default - has crashed by another 13% this morning and is on track to close at its lowest market cap ever (to be expected ahead of a bankruptcy that will wipe out the equity)...
.... and with Evergrande property development peers such as New World Development & Sun Kung Kai Properties both down over 8%, and Sunac China and CK Asset plunging over 7%, the Hang Seng property index has crashed more than 6%, its biggest drop since 2020 to the lowest level since 2016...
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WNU Editor: Most Asian stock are closed today because of holidays. But Hong Kong's Hang Seng Index is open, and it is down 4% (link here). Australian markets are down 2% (link here). Dow futures are down about 300 points (link here).
I expect Beijing to step in to stabilize the markets, but it is going to be very costly. We all know the markets are heavily manipulated, but there is only so much that governments can do.
Even Beijing stop the Evergrande fall, the damages are already done. We just have to wish good luck for that because a big catastrophe will raise an "outside" conflict....an escape for the CCP.
ReplyDeleteOne bad stock I bought that is Chinese, Baidu. It has sunk tremendously and this will not help ha ha.
ReplyDeleteChange the name to U.S. Government and I'd have to look twice if not three times to try and find a difference.
ReplyDeleteChina has the power hungry Xi government running their economy and we have Washington, D.C., powered by the federal reserve.