China is said to contain more of the world's real estate assets than any other country.
Therefore one concern is the potential impact a possible default may cause to international property markets.
Consumer confidence in real estate investments could reduce and perhaps lower property demand, potentially reducing real estate prices.
Should this occur to a great extent, pre-existing property loans could outvalue the revaluation of the real estate asset.
This potential major contrast between loans outvaluing the associated properties could collapse some banks internationally.
A possible mass sell-off of property globally by investors and banks could burst the property bubble.
Another concern is investors could forfeit involvement in companies offering similar services.
There ore other confounding factors involving the current pandemic, employment, inflation and among others.
Thank you for reading.
Please share your thoughts. Do you believe this company could be bailed-out or would other companies in a similar position expect similar treatment?
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