{"id":14375,"date":"2021-09-22T03:00:00","date_gmt":"2021-09-22T03:00:00","guid":{"rendered":"http:\/\/ci028dc946b00026c9"},"modified":"2025-10-01T15:16:19","modified_gmt":"2025-10-01T20:16:19","slug":"evergrande-sell-off-and-bitcoin","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/evergrande-sell-off-and-bitcoin","title":{"rendered":"Evergrande Sell Off And Bitcoin"},"content":{"rendered":"
<\/div>

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <\/em>subscribe now<\/em><\/a>.<\/em><\/p>\n

After covering the Evergrande Real Estate Group last week in Daily Dive #060, our biggest concerns were with increased contagion spread to the Chinese economy and global markets. Since then, we\u2019ve seen a tidal wave of Chinese market sell-offs in the real estate sector, a rise in China bond yields and a larger S&P 500 correction unfolding at the same time. China junk bond yields continue to climb past their March 2020 highs at 14% plus, while the Hang Seng Index fell an additional 8.35% since September 7. <\/p>\n

<\/figure>\n
<\/figure>\n

So far, the largest contagion spread impacts show up in China\u2019s over-leveraged real estate sector with equity and bond sell-offs happening amongst other top property developers like Country Garden Holdings and Sunac China Holdings. The next level of contagion spread would show up in the Chinese banking sector amidst a liquidity crunch. On Friday, The People\u2019s Bank of China injected 90 billion yuan ($14 billion) of funds, the most since February, to provide short-term liquidity into the banking system.<\/p>\n

<\/figure>\n
<\/figure>\n

Shares of Sinic Holdings Group Company, a Shanghai-based real estate developer, plunged nearly 90% on massive volumes (approximately 14 times above average trading volume) before trading was halted. In an article published by Bloomberg<\/em><\/a>, Philip Tse, director and head of Hong Kong and China property research at Bocom International Holdings Co Ltd. said the following,<\/p>\n

\u201c\u2018It\u2019s the same story as everywhere else \u2014 investors are concerned about the liquidity. I think there are most likely some margin calls on some of the major shareholders,\u2019 by looking at Sinic\u2019s stock price pattern this afternoon.\u201d<\/em><\/p>\n

<\/figure>\n
<\/figure>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

China’s Evergrande Real Estate Group has sparked a larger market sell off, potentially impacting the bitcoin price.<\/p>\n","protected":false},"author":2539,"featured_media":14381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[85,132,347,2584],"class_list":{"0":"post-14375","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bitcoin-magazine-pro","9":"tag-bitcoin-price","10":"tag-china","11":"tag-evergrande"},"author_data":{"id":2539,"name":"Dylan Leclair","nicename":"dylan-leclair","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/dylanheadshot-edited-96x96.png"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/authority-disputes-china-central-bank-digital-currency-report.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/14375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2539"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=14375"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/14375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/14381"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=14375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=14375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=14375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}