Evergrande Feels Shadow Financing Squeeze

Evergrande Feels Shadow Financing Squeeze

Assessment

Interactive Video

Business

University

Hard

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The video discusses Evergrande's financial challenges, focusing on its reliance on trust borrowing, which has significantly decreased. The company faces difficulties in securing financing as trust firms impose new loan caps. Evergrande's IPO of its property management arm aims to alleviate its debt burden, but investor confidence remains shaky. Bonds are trading at a low value, indicating ongoing concerns about Evergrande's financial health.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of Evergrande's funding was accounted for by trust borrowing at the end of last year?

50%

41%

25%

60%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the steps Evergrande is taking to manage its debt load?

Reducing employee salaries

Acquiring new properties

Launching an IPO of its property management arm

Issuing new bonds

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much of the property management group does Evergrande own?

50%

60%

70%

80%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current trading value of Evergrande's bonds as mentioned in the video?

$0.74 on the dollar

$0.60 on the dollar

$0.50 on the dollar

$0.80 on the dollar

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What do the trading prices of Evergrande's bonds indicate about investor sentiment?

Investors are confident in Evergrande's financial health

Investors are uncertain about Evergrande's long-term financial stability

Investors are not interested in Evergrande's bonds

Investors expect Evergrande to default soon