China's Real Estate Crisis Echoes Lehman Moment; Country Garden Warns Of 'Major Uncertainties' As Bond Redemption Looms
Portfolio Pulse from Piero Cingari
China's real estate sector is facing a crisis, with liquidity issues among developers and concerns over the $3 trillion shadow banking sector. Zhongrong International Trust Co. failed to meet payment obligations, leading to protests. Regulators have halted short selling and Country Garden Holdings Co. warned of 'major uncertainties' in bond redemption. The company could default if it fails to make a $45 million bond interest payment. JP Morgan Chase & Co. reduced its 2023 growth prediction for China from 5% to 4.8%. Chinese stocks listed in the US, including Alibaba, JD.com, and NIO, opened lower.
August 16, 2023 | 1:47 pm
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NEGATIVE IMPACT
Alibaba's stock is down 3.4% amid China's real estate crisis.
The ongoing crisis in China's real estate sector is negatively impacting investor sentiment towards Chinese stocks, including Alibaba.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 75
NEGATIVE IMPACT
JD.com's stock is trading 4.8% lower due to the crisis in China's real estate sector.
The crisis in China's real estate sector is causing a negative impact on investor sentiment towards Chinese stocks, including JD.com.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 75
NEGATIVE IMPACT
NIO's stock is down 1.5% in the wake of China's real estate crisis.
The ongoing crisis in China's real estate sector is negatively impacting investor sentiment towards Chinese stocks, including NIO.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 75