Chinese real estate giant company Evergrande Group is at the liabilities of $305 billion to pay back to its investors, lenders and market. This incident comes into picture after a leak letter describing the company Evergrande is under the liquidity crisis and urgently require urgent State's help have. This amounts close to 2% of China's GDP which can multiply its affect across China. Experts consider this crisis is not matched with 2008 global crisis and sees it unlikely to affect globally as Lehman brothers who was responsible for crisis in 2008 was a bank failure where as Evergrande is a real estate sector. Experts also believe that the company should resolve itself from the market rather seek Chinese Govt. help. However, market witnessed a dip of 200 points on the very day of happening the events but it bounced back well which can itself state that it is unlikely to affect global market but the matter needs to be scrutinized to absorb the effects if there it may happen in near future. Evergrande Group says that they will come out of its darkest movement and resume construction as well as targeted achievement soon. However, most analysts are of the view that the payment default is a likely outcome. Evergrande group must resolve its issue and bring back confidence in the market. India along with global market is eying into the situation and keeping itself ready for any future course of action if the need arises.
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