Chaos And Panic At Chinese Stocks As Markets Finally Freak Out About Evergrande Default Contagion

It has begun: The greatest financial meltdown in history is now underway. The collapse of one of China’s biggest property developers, Evergrande, has triggered a stock market crash in Hong Kong and it is still threatening to spark a major default crisis that can derail the Chinese economy and spill over global markets, creating a cascade of systemic failures that will result in nothing less than a financial disaster of epic proportions. Chinese traders are getting out of the market while they still can. A major sell-off has started as investors grew increasingly more worried that Evergrande would default its gigantic loan debt. Just yesterday, the Hong Kong stock market crashed by another 13 percent and it is now on track to close at its lowest market cap ever, given that a bankruptcy of this proportion can wipe out hundreds of billions in equity. Even worse, it can spark a default contagion that would put millions of Chinese companies at risk of bankruptcy just as well. And as more and more traders panic abo