London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

What does the debt crisis of Evergrande – one of China’s largest companies have to do with Bitcoin?

The financial world is closely following the possible collapse of Evergrande Real Estate Group, and what’s going on in China.

The global markets plunged as Evergrande stock price lost another 10%, also sending Bitcoin well into the red with a decrease of around 8% in the past 24 hours alone. What is going on?

Evergrande Real Estate

Evergrande Real Estate group became one of the leading companies in China when it comes to real estate. According to BBC, it has developed over 1,300 projects in more than 280 Chinese cities, and it’s also the owner of one of the country’s largest football teams – Guangzhou FC.

It has borrowed over $300 billion from over 171 domestic banks and 121 other financial institutions. As Beijing implemented last year new rules that control the amount of money owed by big real estate developers, Evergrande was forced to offer its properties at massive discounts.

The company did so to ensure there’s enough money coming in to keep its business model operational. Currently, Evergrande is struggling to meet the interest payments on its debt. The question is will Beijing bail them out?

Impact inside and Outside of China

Evergrande is one of the largest companies in the second largest economy in the world. Complicated macro and microeconomic postulates come into play when it comes to the impact that Evergrande’s potential fallout might have on the world’s economy.

There are several reasons for which these problems are serious and need proper consideration.

A lot of people bought properties from Evergrande before the company started building them, who now might lose their deposits if things go badly down.

Evergrande has an international supply chain, and it does business with many firms across the world, all of which face major financial risks should Evergrande default.

Major corporations do have a big impact on the country’s economy. Speaking on the matter was Mattie Bekink from the Economist Intelligence Unit (EIU), who outlined the above connections of Evergrande:

“The financial fallout would be far reaching. Evergrande reportedly owes money to around 171 domestic banks and 121 other financial firms.”

If Evergrande defaults, its lenders (the 292 financial institutions) may be forced to lend less and increase rates, which would trigger credit crunch. Some of them rely on debt to grow, and in some particular cases, they might even be unable to function without it.

Market Impact

Over the past 6 months Evergrande’s stock has sunk over 80%. Just today, the company’s shares plunged over 10%.

This has lead a wider dip in the Hang Seng Index, which tracks major Chinese companies, to decrease by 3.3%, marking its biggest loss since late in July. It seems that the property fears are spreading beyond Evergrande.

The global markets also took a turn to worse in pre-market trading hours. According to CNN, the S&P500 futures are down 1%, and so are DOW and NASDAQ futures.

So What About Bitcoin?

Read the full article at Fintechs.fi

Newsletter

Related Articles

0:00
0:00
Close
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×