Evergrande on brink of collapse. CHINA ECONOMY AS WELL

China financial crash warning! One of world's biggest property firms on brink of collapse.
The Chinese firm, Evergrande, has accumulated debt of approximately $305billion (£221billion) and may severely damage the state's economic growth if it cannot repay the money. The property giant is the second-biggest in China and its liabilities account for two percent of China's total GDP. After the Chinese government introduced restrictions on how much companies could borrow, Evergrande has struggled to pay off its debt repayments thus putting it on the brink of collapse.
Although the Evergrande Group managed to pay $83.5million (£60million) in a bond interest payment on Friday, the company missed a separate deadline on September 23 and two other payments on September 29 and October 11 worth up to $193million (£140million).
Deals to sell off its property arm and Hong Kong headquarters have also fallen through, which has sparked panic across China.
Commenting on the debt repayment on Friday, Jeffrey Halley, senior market analyst at Oanda in Singapore said it has done little to assuage fears over the overall economic picture for China.
He said: "I think this will be a short-term positive but I don’t think this will change the overarching fears about what the true state of the sector or the China economy is at the moment.”
With China integral in producing goods, a valuable trade route while also being the second-largest economy in the world, economists fear the ramifications of the company being unable to repay their debt across the globe.

As an example of China's global importance, due to the pandemic, shipping costs from China to Northern Europe have gone up by 859 percent from last year, according to Freightos.