Evergrande Surges 27% Post Nationalization Rumors, Crypto Market Surge in Tandem

China’s real estate giant Evergrande breathed a sigh of relief after the People’s Bank of China injected nearly $19 billion into the banking system yesterday, in a bid to bailout the debt-ridden real estate giant. Evergrande has over $300 billion in liabilities, making it the most indebted real-estate company and many believe its fall could lead to 2008 like market crisis. Thus, a bailout from China didn’t come as a big surprise to many Wall Street pundits.


Evergrande shares which were on a continuous decline over the past week extended gains over 27% yesterday and rose by 15% in the Hong Kong stock market amid rumors of nationalization.

However, the momentary relief doesn’t lower the impact of the looming crisis as the firm needs to pay nearly $669 million coupon payments this year and debt payments are lined up for up to 2024.

Source: ZeroHedge

Despite China’s bailout promises, some of the largest holders of Evergrande shares in China are planning to sell their entire holdings. Chinese estates sold nearly $109 million Evergrande shares yesterday itself even though the share price of the firm hit $3.

Crypto Market Soars Amid Evergrande’s Recovery

Evergrande’s decline and possibilities of defaulting over the past week have led to a global market downturn including the crypto market. Bitcoin ($BTC) and Ethereum ($ETH) lost key support levels on Monday, but Evergrande’s surge helped the crypto market also trade in the green. The overall crypto market cap rose to near $2 trillion gaining 7% over the past 24-hours.

$BTC reclaimed the $44K range again, rising from the daily low of $41,883 and currently trading at $44,213 with a 5% surge in the last 24-hours. With the bearish September month nearing an end, BTC bulls look to build price momentum leading into October. Market pundits are still adamant on the $100,000 price by the end of the year.

Source: TradingView

Ethereum ($ETH) also regained its $3,000 key level after consolidating around the $2,800 mark for the past three days. The second-largest cryptocurrency by market cap is currently trading at $3,130 with a 7% rise in the past 24-hours.

Source: TradingView

Apart from $BTC and $ETH, the majority of the crypto market traded in green with several altcoins seeing double-digit gains.

Source: Coin360

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