Crisis-hit real estate giant must raise billions: stocks plummet – E24

China Evergrande Group falls sharply on the stock market on Wednesday. The share price is down 16.9 percent in Hong Kong after the company announced that it will raise more than five billion kronor in a share issue.

The real estate industry is an important part of China’s economy. Evergrande has experience as one of the largest and most profitable real estate companies in China.

This winter, the company emerged from a severe liquidity crisis by cutting house prices and introducing a price guarantee. That was before the crown crisis hit China and then the world.
– The worrying thing is that one of the best real estate companies in China ended up in trouble so quickly. What can happen if demand does not return as markets believe? Says Kjennerud, noting that it is not unusual with even higher debt among home builders, DNB Markets’ credit strategist Ole Kjennerud told E24.

Slightly down in china

Asian equity markets fell slightly Wednesday morning, after a weak day on Wall Street the day before.

Here’s how the stock exchanges in the Asia-Pacific region work:

• Shanghai Composite down 0.54 percent
• Shenzhen Composite down 0.66 percent
• Nikkei 225 in Tokyo rises 0.17 percent
• Kospi in Seoul down 0.38 percent
• FTSE Straits Times in Singapore falls 0.5 percent
• ASX 200 in Sydney down 0.1 percent

Bank-fall i United States

Investors will follow a speech by Chinese President Xi Jinping in Shenzhen, writes CNBC. State media Xinhua reported on Sunday that the country “released a new comprehensive reform plan for Shenzhen,” which gave local authorities there “more direct and greater influence on businesses” in areas such as the implementation of economic reforms market-based.

Major US banks Citigroup and JPMorgan opened the earnings season on Tuesday. The two companies closed 4.8 and 1.6 percent lower on Wall Street, respectively.

In Washington, the situation is still frozen with a view to launching a new coronary rescue package, notes Bloomberg.

Stock futures trading points to a slight rise in the United States.