[Asia Economy Reporter Baek Kyunghwan] Major European stock markets are sharply falling in unison due to the crisis of Chinese real estate developer Evergrande Group.
On the 20th local time, the FTSE 100 index of the London Stock Exchange in the UK closed at 6,908.48, down 0.79% from the previous trading day's closing price, and the CAC 40 index of the Paris Stock Exchange in France closed at 6,455.81, down 1.74%.
The DAX 30 index of the Frankfurt Stock Exchange in Germany also fell 2.31% to 15,132.06, and the pan-European Euro Stoxx 50 index ended the session down 2.11% at 4,043.63.
By sector, mining stocks fell 3.6% due to a decline in commodity prices. All major European sub-indices recorded the lowest levels with banks falling 4.3%, while utilities, food and beverages, and real estate recorded the smallest declines.
The market is focusing on the Evergrande Group crisis. Evergrande Group's total debt reached 1.95 trillion yuan (approximately 350 trillion won) as of the end of last year, and management difficulties have intensified as Chinese authorities have introduced various measures to reduce financial risks and stabilize housing prices.
In particular, the market analysis suggests that it will be difficult for Evergrande to pay interest on its debt due this week. It is also known that Chinese authorities have already informed major creditors not to expect debt repayment.
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