China’s economy is set to be impacted after its once primary property developer Evergrande Group was ordered to liquidate following a High Court ruling.
The developer’s debt total is up to $500 billion.
The Motley Fool Chief Investment Officer Scott Phillips says the “real concern” is what will happen as the debts unwind and the potential for a “domino effect”.
“Hopefully, properties can be sold – value can be realised,” he told Sky News Australia.
“But there’s a meaningful amount of impact for a number of particular institutions – it’s the contagion effect.”
The developer’s debt total is up to $500 billion.
The Motley Fool Chief Investment Officer Scott Phillips says the “real concern” is what will happen as the debts unwind and the potential for a “domino effect”.
“Hopefully, properties can be sold – value can be realised,” he told Sky News Australia.
“But there’s a meaningful amount of impact for a number of particular institutions – it’s the contagion effect.”
