Global stock markets are bleeding.
Singaporeans would have woken up this morning to see that the US’ S&P 500 index tumbled 1.7%, posting its worst daily performance since 12 May.
The Dow Jones Industrial Average lost 1.8% for its biggest single-day drop since July.
Of course, Singapore’s stock market wasn’t spared either, with the Straits Times Index (STI) falling 1% to 3,041 yesterday.
Source: Singapore Exchange
Even though the STI has recovered slightly today, there’s still worry among investors about the sudden stock market meltdown.
You would have probably read news reports that investors are fearing a contagion sweeping the financial markets as China Evergrande Group (SEHK: 3333) is on the brink of default.
Should you worry that Evergrande’s potential default could wreak havoc on your stock portfolio?
Let’s explore one of the greatest concerns investors have right now.
What is China Evergrande Group?
Evergrande is a Chinese conglomerate that has built a real estate empire in the world’s most populous country.