Asia-Pacific stock markets sink on concerns around Evergrande bankruptcy
As of 5am GMT, the Chinese Hang Seng Index dropped 3.23% on the Hong Kong stock exchange, while the Australian S&P/ASX 200 lost 1.91%, with shares of major miners declining the most, trading data shows.Also on rt.com China’s cash-strapped developer Evergrande starts repaying wealth product investors with property
The Hang Seng Properties index plunged 7% to a 52-week low, while shares of insurers listed in Hong Kong also fell, with AIA dropping about 5.2% and Ping An Insurance losing 7.43%.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.63%. Markets in mainland China, Japan and South Korea are closed on Monday due to public holidays.
The downward market trend comes as investors assess the financial position of the Chinese real estate developer Evergrande Group, whose debt of $300 billion could lead to the company’s bankruptcy.Also on rt.com Evergrande execs redeemed investment products ahead of looming bankruptcy
The company’s shares in Hong Kong on Monday were down nearly 15%. The company is expected to default later this week. Markets will be affected by whether Evergrande is restructured or completely shut down, according to UBS analysts quoted by the Wall Street Journal.
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