In recent weeks, the situation in China has gone out of control as ongoing efforts to regulate all sectors and China's massive attack on Chinese billionaires have nearly derailed global markets.

For now, the risk seems to be receding, as on Monday the markets started with very strong losses and with the investment sentiment being particularly negative. This time, the markets worked well, with risky assets recording losses and treasuries moving upwards, as a safe haven for investment.

The Evergrande crisis has not been a simple affair and certainly for China itself it has been more difficult to deal with in recent months, since it began its efforts to regulate the markets. Let's not forget that the real estate sector is more complex and much more important than any other sector as its financial connections are huge.

To understand how large damage has been caused from Evergrande's course to bankruptcy, we summarize the behavior of different markets and how they were affected.

Small investors lost much of their wealth

The giant’s stocks have tumbled 89% in the last 12 months and 50% during the last days and as a result, the small investors who had placed money in the stock, have lost it to a great extent. The company's bondholders for the time being have been a little luckier after China's intervention making it urgent for the bonds to be paid.

The Chinese high-yield bond market has been "shaken" significantly

The aftermath of a possible collapse of Evergrande with $ 300 billion in debt has dragged down the entire bond market with the risk of a general collapse being more possible than ever.

Iron ore price collapse- Losses for large metallurgical companies

The chain reactions continued with the prices of iron ore but also the stocks of leading metallurgical companies with a large exposure to Chinese constructions, to tumble in the London stock market and wherever else they are traded. Things are already out of control at this point, although US markets have managed, up to that point, to keep up with small losses.