KUALA LUMPUR: AmInvestment Research believes the sharp fall in China’s Evergrande Group share price will have a limited impact on Malaysia’s stock market.
Evergrande’s share price fell 10% on Monday to HK$2.28. This is the lowest level in more than 11 years. Year-to-date, the stock has tumbled 85% from HK$14.90 at the start of 2021.
“We understand that the weak share price performance is caused by concerns that the company may not have sufficient cash to address its near-term payment obligation to lenders,” it said.
As for the impact on Bursa, AmInvest Research believes the impact to Malaysia’s stock market will be limited.
“In terms of direct exposure to China’s property market for stocks under our coverage, only two property companies have exposure to China property market. Based on our channel checks, noneRead More »