The turbulence of the real estate crisis in China is likely to shake up some of the world’s largest groups. Deeply indebted Chinese real estate giant Country Garden is on the verge of bankruptcy and great uncertainty hangs over its payments. According BloombergSeveral financial institutions, including outside of China, are exposed to the Chinese developer’s debt and could be overwhelmed by a possible default by Country Garden.
US asset management giant Blackrock is exposed to Country Garden’s debt to the tune of $358 million. It is followed by the British banking group HSBC with just over 343 million dollars, followed by Allianz, the number one insurance company in Europe, with 301 million dollars. Among the rest of the exposed companies we find the asset manager Fidelity (187 million), the Swiss bank UBS (133 million) or the American bank JP Morgan (118 million).
Grace period
However, these figures should be taken with caution, as they do not specify whether these groups have invested directly or on behalf of their clients. Also impossible to know if, since publication, they have not reduced their exposure to Country Garden’s debt. In addition, the Chinese developer has a 30-day grace period to regularize its situation and it is only at the end of this period that it could be officially declared in default.
Source: BFM TV
