[Asia Economy Reporter Bu Aeri] The Tokyo stock market in Japan closed lower due to the bankruptcy crisis of Evergrande Group, China's largest private real estate company.
According to the Nikkei 225 index and other sources, the Nikkei 225 index closed at 29,839.71, down 2.17% from the previous session, breaking below the 30,000 mark.
This is the first time in two weeks since the 7th that the 30,000 level has been breached. The decline is the largest in three months since June 21.
The Hong Kong stock market, which had plunged the previous day, closed slightly higher.
On this day, the Hang Seng Index on the Hong Kong Stock Exchange closed at 24,221.54, up 0.51% from the previous trading day.
Amid the stock price plunge of real estate developers in mainland China and Hong Kong, including Evergrande, which raised concerns about default, the Hang Seng Index had plummeted 3.3% the previous day. This rapidly spread anxiety throughout the global financial markets.
Evergrande Group is China's largest private real estate company. As of the end of last year, its debt reached 1.95 trillion yuan (approximately 350 trillion won), and foreign media reports have continued that bankruptcy is imminent.
According to Bloomberg News, some bonds issued by Evergrande are due to mature and pay interest (coupons) on the 23rd. It is expected that this day will provide a primary gauge of Evergrande's ability to repay its debts amid a severe liquidity crisis.
Meanwhile, Xu Jiayin, the founder of Evergrande, expressed his determination to overcome the crisis in an internal letter sent to executives and employees on the occasion of the Mid-Autumn Festival, stating, "Through the joint efforts and hard struggles of the executives and all employees, Evergrande will surely be able to quickly emerge from this dark time."
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