Hong Kong stock market plunges because of Chinese company

The Hong Kong stock market plunged on Monday amid concerns about the financial health of real estate companies as the Evergrande real estate firm’s maturity date approached.

According to trade data, the “Hang Seng” index of the Hong Kong Stock Exchange closed on a decline of 3.23%, while the “Hang Seng Real Estate” index fell about 7%, reaching its lowest level in 52 weeks.

Outside Hong Kong, the Australian S & P / ASX 200 fell 1.91% as major mining stocks fell.

In addition, the MSCI Asia-Pacific Index fell 1.63% and mainland China, Japan and South Korea markets are closed today due to public holidays.

The drop comes as investors assess the financial health of Chinese real estate developer Evergrande, whose $ 300 billion debt could lead to bankruptcy.

The company’s shares in Hong Kong fell around 15% today and the company is expected to default later this week. According to experts from the “Wall Street Journal”, the restructuring of the debt of “Evergrand” or its complete closure will affect the markets.

Source: finanz.ru

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