(ANSA) - BEIJING, 17 SEPTEMBER - Evergrande collapses on the Hong Kong Stock Exchange, accusing close to the trading break a thud of nearly 13%: -12.93%, at 2.29 Hk dollars.
The headlines discount an editorial by Hu Xijin, editor of the Global Times, according to which the company, struggling with a very serious financial crisis, should not bet on saving the government as it is considered "too big to fail", but use the means of the market to save itself. Hu added in his WeChat account that he does not see systemic risks. In Shenzhen, meanwhile, protests from small investors continue around the company's headquarters.
Hu also noted that he does not think that a bankruptcy of Evergrande could trigger a systemic financial storm like Lehman Brothers, because the company is a real estate business and rates on down payments in China are very high. The Global Times is a nationalist tabloid published by the People's Daily, the voice of the Communist Party, but its views do not necessarily reflect official leadership thinking, despite having a notable following.
With total liabilities of $ 305 billion, Evergrande is in the throes of a very serious liquidity crisis and is trying to raise funds and renegotiate maturing loans with banks as it hangs in the balance between a disastrous meltdown with far-reaching impacts on the stability of the financial and real estate systems. China, a managed collapse or a government bailout. (HANDLE).