China Evergrande Debt Default Hits Hong Kong Developers With Doozy While Chinese Big Tech Holds Firm
Portfolio Pulse from Daniel Harrison
China Evergrande Group (OTC:EGRNF) missed another loan payment deadline and its CEO was reportedly arrested. The company's subsidiary, Hengdu Real Estate Group, will miss $537 million in repayments on its bonds. Evergrande's shares fell 7% and fears of its credit issues affecting Country Garden Holdings Ltd. (OTC:CTRYF) caused the latter's shares to fall 3%. Meanwhile, tech companies like Baidu, Inc. (NASDAQ:BIDU), Tencent Holdings Limited (OTC:TCEHY), and Alibaba Group Holding Limited (NYSE:BABA) held firm despite the property market turmoil. EV maker NIO (NYSE:NIO) completed an additional $1 billion convertible debt financing.
September 26, 2023 | 2:33 pm
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NEGATIVE IMPACT
Fears of Evergrande's credit issues affecting Country Garden Holdings caused the latter's shares to fall 3%.
The fear of Evergrande's credit issues spilling over to Country Garden Holdings is causing a negative impact on the latter's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
Evergrande's missed loan payment and CEO's arrest could further depress its stock price.
The missed loan payment and CEO's arrest are negative news that could further depress Evergrande's stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
NIO completed an additional $1 billion convertible debt financing, causing a temporary dip in its shares.
The news of NIO's additional debt financing caused a temporary dip in its shares, indicating investor concern.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Tencent's stock was slightly lower after being hit 2% in the big sell-off among Hong Kong stocks.
Tencent's stock was slightly lower, indicating that the company is not immune to the property market turmoil.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Alibaba's stock was 0.25% stronger, paring losses from Monday’s sell-off.
Despite the property market turmoil, Alibaba's stock is holding up, indicating investor confidence in the company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Baidu's stock was up 1% despite the property market turmoil.
Despite the property market turmoil, Baidu's stock is holding up, indicating investor confidence in the company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60