Evergrande: A Discussion

Concerns Investors May Have:

• China is said to contain more of the world's real estate assets than any other country.
  
• Therefore one concern is the potential impact a possible default may cause to international property markets.
  
• Consumer confidence in real estate investments could reduce and perhaps lower property demand, potentially reducing real estate prices.
  
• Should this occur to a great extent, pre-existing property loans could outvalue the revaluation of the real estate asset.
  
• This potential major contrast between loans outvaluing the associated properties could collapse some banks internationally.
  
• A possible mass sell-off of property globally by investors and banks could burst the property bubble.
  
• Another concern is investors could forfeit involvement in companies offering similar services.
  
• There ore other confounding factors involving the current pandemic, employment, inflation and among others.
  

Thank you for reading.

Please share your thoughts.
Do you believe this company could be bailed-out or would other companies in a similar position expect similar treatment?

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Disclaimer:
This does not constitute any form of advice including legal, financial or investment advice and should not be construed or relied on as such. Always seek advice from a qualified and registered legal practitioner or financial or investment adviser. Information presented is for entertainment purposes only.