Sunday, November 27, 2022
HomeBusinessEvergrande Suspends Share Trading in Hong Kong

Evergrande Suspends Share Trading in Hong Kong

Crisis-hit Evergrande, a Chinese real estate conglomerate, has halted trading in its Hong Kong stock as investors await details on its restructuring plan.

The cause for the trading stop was not stated in the notification to the stock market.

Evergrande owes more than $300 billion (£222 billion) in debt and is rushing to repay suppliers and creditors by selling assets and shares.

The corporation postponed plans to refund investors in its wealth management products last week.

Regardless of when the investment matures, Evergrande said on Friday that each investor in its wealth management program may expect to receive $1,257 in monthly principle payments for three months.

The corporation had previously refused to provide a figure and committed to reimburse 10% of the money when the product matured at the end of the month.

Evergrande stated in a statement on the wealth unit’s website that the situation was “not ideal” and that it will “aggressively raise cash” and revise the repayment plan in late March.

The news was interpreted as reflecting the troubled property developer’s growing liquidity crunch.

Evergrande missed certain interest payments on its offshore notes last week.

Local media claimed over the weekend that the business was ordered by a city administration on the Chinese resort island of Hainan on December 30 to destroy its 39 residential structures there within 10 days because they were erected unlawfully.

Evergrande hasn’t responded to the reports yet.

Rating agencies declared the company’s $19 billion in foreign debts in default after it missed a payment deadline last month.

Evergrande halted its stock in early October, citing “an announcement containing inside knowledge about a large deal” as the reason for the measure.

At the time, there were rumors that rival real estate business Hopson Development was planning to purchase a 51 percent share in its property services division.

Later that month, Evergrande said that the $2.6 billion (£1.9 billion) transaction had fallen through due to a lack of agreement on conditions.

Evergrande’s stock dropped over 90% in value last year as investors were more anxious about the company’s future.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments