Evergrande’s Strategy to Hurt Short Sellers Hits a Wall

Evergrande’s Strategy to Hurt Short Sellers Hits a Wall

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the financial challenges faced by a company due to limited options and regulatory requirements. It highlights the reasons behind Evergrande's decline, including government investigations and share dilution. Additionally, it examines the impact of the government's crackdown on cash management products, which are crucial funding channels for Chinese developers.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the minimum percentage of free float that the company needs to maintain according to regulators?

20.5%

22.4%

25.0%

23.5%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been one of the reasons for the decline in Evergrande's share value?

Rise in foreign investments

Decrease in construction projects

Government's involvement in state capital

Increase in property prices

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected impact of the government's crackdown on cash management products?

Expansion of investment opportunities

10% market shrinkage

Increase in product offerings

Rise in banking revenue

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much has the market for cash management products grown since 2019?

50%

60%

80%

76%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a characteristic of cash management products that the government is concerned about?

Low yield

Fixed maturity dates

High transparency

Lack of transparency