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  Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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<p class="has-drop-cap">Chinese property firms remain under pressure as share prices in the sector took a fresh downturn. Notably, shares of the country’s biggest developer, Evergrande, crashed 21% Monday after the company <a aria-label="canceled crucial creditor meetings (opens in a new tab)" href="https://www.bloomberg.com/news/articles/2023-09-25/evergrande-liquidation-risk-rises-after-creditor-meet-scrapped?embedded-checkout=true" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">canceled crucial creditor meetings</a>. As the market anxiety rises, China now <a aria-label="faces risks (opens in a new tab)" href="https://www.ft.com/content/790ceab3-3169-445f-aade-733daa50bb07" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">faces risks</a> that the current crisis could extend to other sectors, particularly commodities.&nbsp;</p> 
<h3 id="chinese-property-stocks-suffer-worst-daily-slump-in-2023">Chinese Property Stocks Suffer Worst Daily Slump in 2023</h3> 
<p>China’s property market can’t catch a break. On Monday, the stock prices across the sector witnessed the sharpest drop in 2023, with Evergrande leading the losses following a 21% drop after it canceled key creditor meetings at the last minute.&nbsp;</p> 
<p>The country’s <a href="https://tokenist.com/chinas-biggest-property-developer-expects-to-post-7-6b-loss-for-h1-2023/" rel="noopener noreferrer nofollow" class="deco-link">property crisis</a> emerged in 2020 after the country’s most prominent developers came under extreme pressure in the wake of new regulations on the sector’s debt limits. The crisis quickly spread beyond the big real estate players like Evergrande in Country Garden, affecting Kaisa Group, Sinic Holdings, Sunac, and more.&nbsp;</p> 
<p>The challenges continued to mount this week after Evergrande’s mainland unit said it failed to settle an onshore bond, adding to the uncertainty looming over the company’s future as its restructuring plan with offshore creditors teeters. The developer scrapped key creditor meetings at the last minute, Bloomberg reported Monday, saying it must revisit its restructuring plan, saw its money management unit members detained, and failed to meet regulator qualifications to issue new bonds.&nbsp;</p> 
<p>The deteriorating market crisis has been also <a href="https://tokenist.com/msci-china-index-continues-losing-streak-down-8-this-year/" rel="noopener noreferrer nofollow" class="deco-link">weighing heavily on Chinese stocks</a>, with Country Garden, Logan Group, and China Aouyan, all falling notably this week.&nbsp;</p> 
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<h3 id="risks-of-contagion-grow-commodity-market-first-in-line">Risks of Contagion Grow, Commodity Market First in Line</h3> 
<p>However, that’s not the end of the woes for China’s economy. The growing turmoil is now causing fresh risks of further contagion.</p> 
<p>In other words, the ongoing crisis and worsening investor sentiment could spread into other Chinese sectors, most notably commodities. This nervousness was reflected in the latest price movements, with iron ore <a href="https://www.bloomberg.com/news/articles/2023-09-25/iron-ore-tumbles-as-china-construction-sector-avoids-restocking?srnd=markets-vp&amp;embedded-checkout=true" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">plummeting</a> over 4% on Monday.&nbsp;</p> 
<p>The drop comes amid a period when seasonal demand from China has historically been robust. The world’s second-biggest economy purchases around 70% of the world’s seaborne iron ore, but this trend is now in jeopardy as risks grow. As a result of the turmoil, Chinese developers have also stopped restocking steel.&nbsp;</p> 
<p>Last month, the Chinese government <a href="https://tokenist.com/chinas-securities-regulator-takes-steps-to-improve-the-market-but-investors-weary/" rel="noopener noreferrer nofollow" class="deco-link">implemented measures</a> to support the national stock market and address its vulnerabilities. However, these actions have done little to curb the worsening crisis so far effectively.</p> 
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<p><em><strong>Do you think the Chinese property market crisis can lead to global aftershocks? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/how-chinas-property-crisis-can-spill-into-commodities-other-markets/">How China’s Property Crisis Can Spill into Commodities, Other Markets</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

How China’s Property Crisis Can Spill into Commodities, Other Markets

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