Question
Evergrande's debt crisis could have far reaching effects for global financial markets for not just investors but debt markets in total. Would performing a financial
Evergrande's debt crisis could have far reaching effects for global financial markets for not just investors but debt markets in total. Would performing a financial analysis (Credit risk, Liquidity risk, Market risk etc) have foresaw this risk? The exploded leverage exacerbated the company's credit risk which can have a contagious effect on investor's liquidity risk. In fact, international investors did not receive any of the last payment that was made. Will the Chinese government reconsider a rescue plan due to the systemic importance of the company and its likely impact on the Chinese economy, reputation and contagion effect?!
Here is a background and update from WSJ: https://www.wsj.com/articles/chinas-evergrande-debt-crisis-sizing-up-a-big-mess-11633253402?mod=markets_lead_pos3(Links to an external site.)
Share your thoughts on the likely impact the Evergrande debt crisis can have on global financial markets.
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