The risk of contagion by Evergrande punishes the great bank with falls of up to 7%

The Spanish bag did not escape the bearish current.Although the IBEX 35 managed to moderate the losses thanks to the pull of the tourist, the descents of the bank led the selective to conclude with a drop of 1.2%, at a certain distance of the 2.39% that registered at intradic levels when it reachedlose the level of the 8.600 points.The fear that Evergrande cannot cope with the payment of its debt weighed hard on bank, a business with a strong presence in the IBEX 35.

In tune with European banking sector (-4.25%), Spanish representatives registered notable decreases.On his return to Eurostox BBVA, 7.48% fell.They followed Santander (-4.8%), CaixaBank (-4.1%), Sabadell (-3.66%) and Bankinter (-3.26%).Only above the banks was Arcelormittal.The fear that the deceleration in China, a main demand for basic resources, led the aceler to go back 7.7% increased the award in China.

The opposite face was represented by the tourist.IAG shot 10.68%;Amadeus, 4% Yena, 2.2% after knowing that the US will allow the entry of European travelers vaccinated in November.

The output of the bag investors contrasts with the good performance of the fixed income.After several rebound sessions of the profitability, yesterday the yields of the euro zone resumed the bearish trend.The 10 -year Spanish bond went from 0.35% to 0.33% while the German in the same period fell to -0.32% from -0.28%.

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— adam james Wed May 25 12:29:41 +0000 2011

The bankruptcy fear of Evergrande accelerates the falls of the bags

Although China is showing signs of providing liquidity to the system and encouraging suppliers and creditors to give time for a more controlled settlement, the doubts that loom about Evergrande served as a correction.With the Hang Seng (-3.3%) in minimums of one year, the rest of European and American indices joined the falls.The German Dax fell 2.3%;the French CAC, 1.74%;Italian MIB, 2.6% and the British FTSE 0.86%.Wall Street modeled losses at the close and its main indicator, Dow Jones, dropped 1.78%.

In a week in which all eyes point to the central banks, Evergrande faces a fire test that will allow verifying how its liquidity crisis is deep.After having announced the delay of payments to banks and suppliers, the second Chinese real estate must pay the interests of two promissory notes that expire on Thursday.Together with them, he will have to disburse 83.5 million in interest of a five -year dollar bonus at 8.25% and 36 million dollars in a domestic bonus.

Ahead three days, but on Monday investors began to put an eventual default price.In a session in which the main Asian bags remained closed, Evergrande fell 10.24%, up to 2.28 Hongkonese dollars, descents that at levels intradicated touched 19% with their shares at least 11 years.

The falls were not limited to the bag.In the debt market, the bonus that expires in March 2022 was up to 27% of the nominal while its profitability shot at 594%, far from 13.66% registered at the beginning of the year.

Doubts about their viability are not limited to 2021 (-84%).The loss of investors and creditors confidence was aggravated in 2020 after the failed attempt to take off his real estate subsidiary HENGDA.The income that was expected to obtain were going to reduce their debt, which reaches 305.000 million dollars (260.167 million euros).In case the indebtedness were not enough, the litigation that it maintains with suppliers and creditors together with the deceleration fears and the measures approved by the Government to cool the housing market have aggravated the problems.The fear of a possible default leads many to speculate with the possibility of Evergrande is the new Lehman Brothers.

From UBP they believe that an uncontrolled default would be potentially systemic for China.“The direct rescue by the Government and the high social costs associated with an non -payment are incompatible with the Chinese Common Prosperity Initiative.Most likely, a default process supported by the Executive is produced, ”says Norman Villamin, INVERSION DIRECTOR of UBP.