Stock Market Today: China's Evergrande Crisis Knocks 614 Points Off Dow

A possible debt default for a Chinese real estate giant sent shockwaves across global markets and put a dent in U.S. stocks Monday.

person falling off of cliff
(Image credit: Getty Images)

Most global investors' eyes were fixated on China on Monday, as the looming debt default of a real estate titan there could have worldwide implications – indeed, such fears served the Dow its worst single-session loss since July.

We break down the situation in more detail here, but in short: Chinese property developer Evergrande (EGRNY, -22.1%) currently has about $15 billion in cash versus some $300 billion in liabilities, and several analysts believe that it could default on debt payments as soon as this week. A worst-case scenario could theoretically spark a credit crisis, hammer large firms with significant exposure to Evergrande debt and cause economic distress across the numerous other businesses that Evergrande is invested in.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for, and the Managing Editor for before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.