China is Denmark’s fourth largest trading partner, so the recent slowdown in the Chinese economy will hit Danish growth, according to calculations from Danmarks Nationalbank.
“There are signs that the crisis in the housing market in China is spreading to parts of China’s financial sector. It gives many investors nervous twitches,” Kim Fæster, chief analyst at Jyske Bank, writes in a note to its customers.
In the fall of 2021, one of China’s largest real estate and construction companies, Evergrande, declared insolvent, which led the entire housing market into a huge crisis. The Chinese have 60% of their wealth placed in the housing sector, so the crisis quickly spread to the whole society.
On Monday, August 28, trading in Evergrande’s shares resumed on the Stock Exchange in Hong Kong after a 17-month break.
Prior to the re-admission, the company was able to report a loss for the past six months for an amount corresponding to around 21 billion DKK. According to Ritzau, this made the Evergrande share fall by almost 87% on Monday morning.
Source: bt.dk
