Chinese Company’s Massive Debt Threatens Global Economy
The stock market is looking to bounce back after starting the week off with a sharp selloff and the biggest drop in months.
On Monday, the Dow dropped more than 600 points, marking its worst day since July.
The NASDAQ and S&P 500 also dropped sharply for their worst days since May.
Investors are closely watching the Chinese market, with one of China’s top real estate developers in crisis.
The concern stems from Chinese real estate company Evergrande, which is more than $300 billion in debt.
Evergrande was supposed to pay the interest on some of those debts Monday, but didn’t. Now there’s concern it could cause a ripple effect in the global markets.
The massive amount of money borrowed by Chinese companies has long been considered a looming threat to market stability.
October has historically seen some of the market’s worst crashes, worrying investors even more.