After evergrande, another major Chinese developer got into trouble. The Shanghai stock exchange weakened under the weight of the development sector. Only slightly so far.
Both the Shanghai Stock Exchange’s aggregate index and the main CSI300 index closed 0.3 percent weaker on Tuesday. The main cause is the decline in the development sector index, which has lost less than three percent. This is due to the news that Modern Land did not pay part of the bonds to its creditors within the deadline. The maturity expired on Monday, October 25.
Modern Land is another major Chinese developer who has been in serious trouble. The first was Evergrande a few weeks ago, which announced a restructuring. Investors were already questioning whether it was anyone else’s turn. Now their fears seem to be confirmed. Reuters quoted, a sourceas saying that we are probably only at the beginning of the domino effect.
Fears of the announced introduction of property taxes also dragged the stock market down. These should now apply to real estate, which is also located outside major cities of China. And they are to be targeted at luxury apartments or owners of second and other apartments or houses.
