Evergrande’s capital is only ¥3.9 billion, but it leveraged ¥2 trillion of financing loans…. Did China just hit a brick wall?

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Well, they are just kicking the can at this point. Several US companies use Evergrande Bonds as collateral to meet their Margin Requirements. When bankruptcy is officially declared those Bonds can’t be used as collateral. These delays in downgrading to D is giving those US companies time to find other ways to provide Collateral if they can. Citadel, Susquehanna and Blackrock have been mentioned as having large numbers of Evergrande Bonds.

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More updates on Evergrande:

h/t Meg_119

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