- Analytics
- News and Tools
- Market News
- China: Systemic risks to be avoided following the fall of Evergrande - Natixis
China: Systemic risks to be avoided following the fall of Evergrande - Natixis
FXStreet reports that as a follow-up of the immediate spillover effect of Evergrande, strategists at Natixis focus on China’s real estate sector and analyze the future implications.
“We expect more private and small real estate developers to fall with tighter regulations and weaker profit generation, especially for the firms with high leverage.”
“A key question is whether the fall of Evergrande will trigger a domino effect and pose systemic risks. The answer is systemic risks will be avoided in the run-up to the 2022 Party Congress given its historical importance. However, this would also imply China Evergrande's debt crisis may snowball down the road considering economic growth will not be here to awash financial losses as was the case in the past.”
“The most likely scenario is Evergrande may be forced to sell assets at a discounted price.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
