Australian equity market rocked at the start of trading amid fears of a mortgage default in China
As of 11:30 am, the market had recovered slightly and is currently trading at 7243.9 points, just 0.087% below its opening mark.
The biggest players of the day so far have all been mining giants, with Champion Iron leading the market growing 6.47% to $ 4.77 per share.
Other big players include Domino’s Pizza (up 2.03%), RIO Tinto (up 2%) and Qantas Airways (up 1.86%).
The pulling stocks include AMP (down 3.44 percent), Pointsbet Holdings (down 1.68 percent) and APA gas business (down 4.34 percent).
Much of the investment hesitation stems from the fact that Chinese real estate company Evergrande could default on hundreds of billions of dollars in debt.
Evergrande is one of China’s largest developers and builds everything from residential properties and electric vehicles to theme parks and sports teams.
The company borrowed heavily to take advantage of the influx of contracts that came to it, including taking loans from its employees.
Now, there are fears that Evergrande may not be able to repay some $ 300 billion in debt, posing a tangible risk that the Chinese real estate market could collapse.
The real estate sector accounts for around 14 percent of China’s GDP.
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