Bermuda Post

Sunday, Mar 26, 2023

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

What does the debt crisis of Evergrande – one of China’s largest companies have to do with Bitcoin?

The financial world is closely following the possible collapse of Evergrande Real Estate Group, and what’s going on in China.

The global markets plunged as Evergrande stock price lost another 10%, also sending Bitcoin well into the red with a decrease of around 8% in the past 24 hours alone. What is going on?

Evergrande Real Estate

Evergrande Real Estate group became one of the leading companies in China when it comes to real estate. According to BBC, it has developed over 1,300 projects in more than 280 Chinese cities, and it’s also the owner of one of the country’s largest football teams – Guangzhou FC.

It has borrowed over $300 billion from over 171 domestic banks and 121 other financial institutions. As Beijing implemented last year new rules that control the amount of money owed by big real estate developers, Evergrande was forced to offer its properties at massive discounts.

The company did so to ensure there’s enough money coming in to keep its business model operational. Currently, Evergrande is struggling to meet the interest payments on its debt. The question is will Beijing bail them out?

Impact inside and Outside of China

Evergrande is one of the largest companies in the second largest economy in the world. Complicated macro and microeconomic postulates come into play when it comes to the impact that Evergrande’s potential fallout might have on the world’s economy.

There are several reasons for which these problems are serious and need proper consideration.

A lot of people bought properties from Evergrande before the company started building them, who now might lose their deposits if things go badly down.

Evergrande has an international supply chain, and it does business with many firms across the world, all of which face major financial risks should Evergrande default.

Major corporations do have a big impact on the country’s economy. Speaking on the matter was Mattie Bekink from the Economist Intelligence Unit (EIU), who outlined the above connections of Evergrande:

“The financial fallout would be far reaching. Evergrande reportedly owes money to around 171 domestic banks and 121 other financial firms.”

If Evergrande defaults, its lenders (the 292 financial institutions) may be forced to lend less and increase rates, which would trigger credit crunch. Some of them rely on debt to grow, and in some particular cases, they might even be unable to function without it.

Market Impact

Over the past 6 months Evergrande’s stock has sunk over 80%. Just today, the company’s shares plunged over 10%.

This has lead a wider dip in the Hang Seng Index, which tracks major Chinese companies, to decrease by 3.3%, marking its biggest loss since late in July. It seems that the property fears are spreading beyond Evergrande.

The global markets also took a turn to worse in pre-market trading hours. According to CNN, the S&P500 futures are down 1%, and so are DOW and NASDAQ futures.

So What About Bitcoin?

Read the full article at


Related Articles

Bermuda Post
In a dramatic U-turn against His Government: Judicial Overhaul Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
Nashville police officer, and a female driver shooting one another
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States