Revealed: The Australians Most at Risk if Chinese Property Giant Evergrande Collapses With More Than $400billion of Debt It Can’t Repay
By Stephen Johnson
- Australians who own mining shares most at risk from the collapse of Evergrande
- Iron ore miner Fortescue Metals Group has seen its share price plunge in weeks
- Online broker said the iron ore price could plunge further amid China debt fears
Australians who own shares in mining companies are most at risk from the possible collapse of Chinese property giant Evergrande.
Iron ore prices last week plunged below $US100 for the first time in 14 months amid fears China’s Communist Party government would let Evergrande fail with debts of more than $400billion.
Since the end of July, the commodity used to make steel has halved from the $US200-a-tonne mark.
Online broker CommSec said uncertainty about Evergrande and China’s cutbacks in steel production to meet climate change targets had caused iron ore prices to plummet.
Senior economist Ryan Felsman said this put Australians at particular risk if they had invested a lot in mining shares.
Australians who own shares in mining companies are most at risk from the possible collapse of Chinese property giant Evergrande (pictured are the headquarters in Shenzhen in southern China)
‘Aussie investors are indirectly exposed to Evergrande through the Chinese property sector’s insatiable demand for iron ore,’ he said.
‘The price of the steel-making ingredient – Australia’s most important export – has already halved from record highs of around US$233 a tonne in May, following China’s clampdown on the property sector and pollution.’
Since July 30, the share price of iron ore miner Fortescue Metals Group has dived by 39 per cent from $26.30 to $15.87.
Shares in diversified miner BHP since then have fallen by 29 per cent from $53.49 to $37.84.
Rio Tinto shares during the same time frame have dropped by 24.5 per cent from $133.42 to $100.67.
Mr Felsman said iron ore prices could fall even further as Evergrande’s collapse hit China’s broader property market.
Iron ore prices last week plunged below $US100 for the first time in 14 months amid fears China’s Communist Party government would let Evergrande fail with debts of more than $400billion
‘A downdraught in Chinese property prices would further subdue construction and reduce iron ore demand,’ he said.
‘Of course, a potential Evergrande default would be catastrophic for steel demand and shares of Aussie-listed iron ore producers.’
Evergrande last week missed a deadline to pay $110million worth of interest payments but chairman Hui Ka Yan promised construction activity would resume as bondholders were repaid.
Shares of Evergrande’s electric car unit plunged as much as 26 per cent on Monday after it warned it faced an uncertain future unless it got a swift injection of cash.
Since July 30, the share price of iron ore miner Fortescue Metals Group has dived by 39 per cent from $26.30 to $15.87 (pictured is the iron ore miner’s chairman Andrew Forrest, left, doing stretches with Prime Minister Scott Morrison at the Christmas Creek mine in Western Australia’s Pilbara region)
Thank you for another informative site. The
place else may just I am getting that type of information written in such an ideal means?
I have a undertaking that I am just now running on, and I have been on the glance out for such information.
Howdy! Do you know if they make any plugins to assist with Search Engine Optimization? I’m trying to get my
blog to rank for some targeted keywords but
I’m not seeing very good success. If you know of any please share.
Howdy, i read your blog occasionally and i own a similar one and i was just wondering if
you get a lot of spam comments? If so how do you prevent it,
any plugin or anything you can recommend? I get so much lately it’s
driving me mad so any help is very much appreciated.
Thanks for sharing your thoughts on website. Regards
Since the admin of this website is working, no uncertainty
very rapidly it will be renowned, due to its quality contents.
What’s up, I wish for to subscribe for this website to obtain hottest updates, therefore where can i do
it please assist.
Hey there! I know this is somewhat off topic but I was wondering if you knew
where I could get a captcha plugin for my comment
form? I’m using the same blog platform as yours and I’m
having trouble finding one? Thanks a lot!
It’s a pity you don’t have a donate button! I’d definitely donate to this superb blog!
I suppose for now i’ll settle for bookmarking and adding your RSS feed to
my Google account. I look forward to new updates
and will talk about this blog with my Facebook group.
WOW just what I was looking for. Came here by searching for website
Genuinely no matter if someone doesn’t know then its up to other users that they will help, so here it occurs.
Unquestionably believe that which you stated.
Your favorite justification seemed to be on the net the easiest thing to
be aware of. I say to you, I certainly get irked while people
consider worries that they just don’t know about. You managed to hit
the nail upon the top and also defined out the whole thing without having side-effects , people could take a signal.
Will probably be back to get more. Thanks
whoah this weblog is wonderful i really like reading your posts.
Keep up the good work! You know, a lot of individuals are looking
around for this info, you could aid them greatly.
bookmarked!!, I love your blog!
I do not even understand how I finished up right here, however I thought this submit was great.
I don’t recognise who you’re but certainly you are going to a famous blogger should you aren’t already.
Thanks for sharing your thoughts. I really appreciate your efforts and I am waiting for your next
write ups thanks once again.
This information is priceless. When can I find out more?
Link exchange is nothing else except it is only placing the other person’s website link on your page at appropriate place and other person will also do same in support of
Stunning quest there. What happened after? Thanks!
When I originally left a comment I appear to have clicked on the -Notify me when new comments are added-
checkbox and from now on whenever a comment is added I recieve four emails with the exact same
comment. Perhaps there is a way you are able to remove me from that
service? Many thanks!
I’m not sure why but this blog is loading incredibly slow for me.
Is anyone else having this problem or is it a issue on my end?
I’ll check back later on and see if the problem still exists.
Excellent blog! Do you have any helpful hints for aspiring writers?
I’m planning to start my own site soon but I’m a little lost on everything.
Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely overwhelmed ..
Any recommendations? Many thanks!
May I just say what a comfort to find someone that truly understands what
they’re discussing on the internet. You definitely know how to bring an issue to light and make it important.
More and more people ought to read this and understand this side of the story.
I was surprised that you aren’t more popular because you certainly possess the gift.
I quite like looking through a post that will make people think.
Also, thank you for allowing for me to comment!
Greetings! Very helpful advice within this post! It is the little changes that produce the most significant changes.
Many thanks for sharing!
Thanks for sharing such a pleasant idea, paragraph is nice, thats why i have read it fully
Have you ever thought about writing an e-book or guest
authoring on other sites? I have a blog centered on the same information you
discuss and would love to have you share some stories/information. I know my viewers
would appreciate your work. If you’re even remotely interested, feel free to send me an e mail.