Evergrande: The crisis of China’s biggest real estate company?, due to which 10 lakh crores of the world’s 500 rich people drowned in a day

Evergrande: There was a huge fall in the stock market in India on Monday. This fall was not limited to Sensex or Nifty only, but from America’s Dow Jones, Wall Street to Japan’s Nikkei closed on the red mark. There is still a risk of falling stock markets going forward. Two main reasons emerged for …

Evergrande: The crisis of China’s biggest real estate company?, due to which 10 lakh crores of the world’s 500 rich people drowned in a day Read More »

September 22, 2021 11:47 pm

Evergrande: There was a huge fall in the stock market in India on Monday. This fall was not limited to Sensex or Nifty only, but from America’s Dow Jones, Wall Street to Japan’s Nikkei closed on the red mark. There is still a risk of falling stock markets going forward.

Two main reasons emerged for this. The first and foremost reason was the crisis arising out of Evergrande, China’s largest and most heavily indebted real estate company. This has worried the business environment around the world. The second reason was America’s Finance Minister Janet Yellen’s warning, in which she warned of economic devastation due to the wildly rising debt and appealed to Parliament to impose limits on these debts.

Stock markets around the world have been put on high alert regarding the Evergrande crisis. In such a situation it is important to know that what is Evergrand Company? Evergrande is said to have started in 1996 as a company selling bottled water.

With the entry of this company into real estate, it launched tremendous schemes for the middle class and in so many years became the leading company in the real estate market of China.

At present, Evergrande controls two percent of China’s entire real estate business. Evergrande has more than 1,300 projects in 280 cities in China. It also owns the Guangzhou Football Club, a professional football team from China.

Evergrande has made a good mark among the middle class in the real estate market. However, during the tremendous growth, the company had a debt of more than $ 300 billion (about Rs 22 lakh crore).

.In the same year, when China imposed restrictions on sectors such as its digital economy and digital education, fear spread in the real estate sector that China might set a ceiling on it to limit d…Last year also, the Communist government of China had made rules for real estate owners, under which it was decided to control the loans they get.

Amid this atmosphere of fear, Evergrande started selling its business. But due to the slowdown in the Chinese property market due to the Corona epidemic, the company had to sell its properties at a big disc.t.Due to, this the company was successful in raising money, but far from paying the debt of Rs 22 lakh crore, the company is also facing difficulty in paying the interest of $ 84 million (about Rs 618 crore) on this debt. The money raised so far has only been used to run the business of the company.

Now the biggest concern in front of Evergrand is to pay this interest on the loan. From this week, the company started returitstheir money to the investors of its wealth management business.

But due to a lack of funds, he is facing a lot of pros. ms. In such a situation, if Evergrande sinks, then there will be five big problems for the people and companies associated with wi. it.

1. A large number of people started buying properties from the company even before Evergrande’s buildings were built. At present, the work of 800 residential buildings of the company is incomplete. That is, if the Evergrande sinks, then the money of thousands of people who invested money in buying the property will also sink.

2. Apart from many companies in China and around the world do who do business with Evergrande. These include firms related to the construction sector and deigning, and companies that supply materials. Due to the sinking of Evergrande, there will be a lot of trouble for the companies associated .h it. Even some companies will even go bankrupt.

3. The drowning of Evergrand will affect the people working in the company, whose jobs will be lost. This threatens to increase the unemployment crisis in China. Evergrande has not even paid some of its employees due to the inability to raise funds. That is, there is a possibility of creating a ruckus in China everywhere.

4. The biggest impact of the sinking of a big company like Evergrand will be on China’s economicThislly, this company has taken loans from 171 domestic banks and 121 financial institutions. If Evergrande fails to pay the interest, the bank and other lenders will pay less interest to it the credit. The credit crunch is most likely to happen in this situation. This is a situation where the company can take loans at affordable rates. This will be a bad sign for the world’s second-largest eco hard-pressed companies-pressed have little chance of o.rowing.There is even a point of their closure.

5. Concern is being raised about this at the global level because of Chinsecond-largest largest economy in the world. If a company like Evergrande defaults, it will have a big impact on foreign companies associated with it and its loss will be on a glo. scale. On the other hand, foreign investors can also stop looking towards China to invest money in this concern.

Evergrande currently employs 200,000 employees. This company also generates about 38 lakh jobs in China every year. In such a situation, many experts believe that the Chinese government can come forward to save this company. There will be two reasons for this… The impact of the sinking of the real estate company will be on the businesses and suppliers associated with it.

.That is, the entire supply chain itself will be disrupted. The sinking of a company like Evergrande would be a disaster for millions. Not only on the people working here but also on the people who invest money.

.In such a situation, the Chinese government may try to decide that Evergrande should be able to repay its interest and people’s trust in the real estate sector remains, but there is also an argument against it if the Chinese government is heavy-handed. Comes forward to save a debt-ridden company, then for its corporate policy.

This will be seen as a wrong message and many more companies in trouble ahead will expect the same.

The impact of this crisis on Evergrande was seen on the stock markets on Monday. According to Bloomberg, 500 richest people lost $ 135 billion (about Rs 10 lakh crore) in one dayTesla owner Elon Musk’s net worth was the highest at $ 7.2 billion (about Rs croresousand crore) and Amazon’s Jeff Bezos lost $ 5.6 billion (about Rs croresousand crore).

.Apart from this, the wealth of Evergrande founder and chairman Hui Ka Yan has also declined drastically and he is now living on a net worth of $ 7.3 billion (about Rs croresousand crore) from the highest of $ 42 billion (about Rs 3 lakh crore) i.2017. went.

Prev Post

स्व.तलवार की स्मृति में पिंक सिटी प्रेस क्लब में श्रद्धांजलि सभा का आयोजन

Next Post

कोर्ट के आदेशों की अवहेलना पड़ी भारी, PWD के अधीक्षण अभियंता कार्यालय की नीलामी के आदेश

Related Post

Latest News

पुलिस पर प्रताड़ना का आरोप, परिवादी को ही कर रही है परेशान 
टोंक के बनेठा थाने का एसआई 10 हज़ार की रिश्वत लेते गिरफ्तार, एक प्रकरण में कार्रवाई नही करने की एवज में मांग रहा था घूस
Rural Olympic Games - Innovative brilliant initiative of Bhilwara Collector Modi

Trending News

राजस्थान के मंत्रियो व कांग्रेस विधायको को चेतावनी
NPS कार्मिक 01 अप्रैल 2022 के पश्चात NPS आहरण की राशि को पुनः 31 दिसंबर 2022 तक एकमुश्त अथवा अधिकतम 4 किस्तों में जमा करानी होगी
चिरंजीवी योजना में सहायता के लिए फोन 01482-232643 पर करे घंटी 2 घंटे में समाधान
प्रिंसिपल डाॅ. खटीक पुनः बने जिलाध्यक्ष 

Top News

राजस्थान के मंत्रियो व कांग्रेस विधायको को चेतावनी
पुलिस पर प्रताड़ना का आरोप, परिवादी को ही कर रही है परेशान 
NPS कार्मिक 01 अप्रैल 2022 के पश्चात NPS आहरण की राशि को पुनः 31 दिसंबर 2022 तक एकमुश्त अथवा अधिकतम 4 किस्तों में जमा करानी होगी
चिरंजीवी योजना में सहायता के लिए फोन 01482-232643 पर करे घंटी 2 घंटे में समाधान
टोंक के बनेठा थाने का एसआई 10 हज़ार की रिश्वत लेते गिरफ्तार, एक प्रकरण में कार्रवाई नही करने की एवज में मांग रहा था घूस
REET - 2022 का परीक्षा परिणाम घोषित 
राजस्थान में रहेगा गहलोत का ही राज, सचिन.. 
Rural Olympic Games - Innovative brilliant initiative of Bhilwara Collector Modi
राजस्थान में PFI पर शिकंजा कसने के कलेक्टर व एस पी को दिए अधिकार, पदाधिकारी भूमिगत
गहलोत नही लडेंगे चुनाव, सिंह कल भरेंगे नामांकन,राजस्थान पर फैसला आज