Problems at Evergrande become a vicious circle

A day after massive protests by frustrated investors outside Evergrande’s corporate headquarters, the stock price of the Chinese real estate group plummeted in Hong Kong on Tuesday. The stock of the Guangzhou-based company, which is threatened with bankruptcy, lost more than ten percent of its value in trading after the company’s management published a new warning announcing risks of further acute liquidity shortages. Trading of Evergrande bonds was suspended altogether due to sharp price fluctuations.