The post Evergrande Liquidation Could Trigger Potential Global Crisis, Boosting Crypto Market appeared first on Coinpedia Fintech News
After failing to convince the court of its restructuring strategy to repay its gigantic debt, China Evergrande Group was ordered into liquidation on Monday, thus exacerbating the real estate crisis in the second-largest economy in the world.
With the company’s valuation down more than 90 percent in the past year, economists forecast a challenging time for Evergrande investors including banks, property buyers, and other real estate companies. Furthermore, the Chinese government is already fighting the impact of negative inflation, which is at about -0.3 percent.
Domino Impact on Global Markets
To put the Evergrande crisis into context, the company’s debt is more than four times larger than El Salvador’s gross domestic product (GDP) and equal to that of Chile, Romania, and Finland. Notably, Evergrande was a major employer in China both directly and
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