Home Business Hong Kong Trade of Evergrande Resumes, Share Prices Rise

Hong Kong Trade of Evergrande Resumes, Share Prices Rise

Hong Kong Trade of Evergrande Resumes, Share Prices Rise
Source: CNBC

The value of stocks in crisis-stricken countries has plummeted. Evergrande, a Chinese property developer, surged on Tuesday afternoon when Hong Kong stock exchanges reopened.

On Monday, the deeply indebted company put its stock on hold pending the publication of “inside information.”

It comes as Evergrande reported a 39 percent drop in revenue for 2021 compared to the previous year, reaching $69.5 billion (£51.6 billion).

The corporation also revealed that it had been forced to destroy 39 structures on Hainan Island.

The structures affected by the demolition order are at the company’s Ocean Flower Island project, according to the company, and the decision does not affect other property plots in the project.

“In line with the advice of the decision letter, the firm will actively interact with the authority and handle the matter correctly,” Evergrande stated in a filing to the Hong Kong Stock Exchange.

Concerns about the company’s financial situation were also addressed in the announcement: “With regard to the company’s current liquidity situation, the company will continue to actively maintain communication with creditors, strive to resolve risks, and safeguard the legitimate rights and interests of all parties.”

Evergrande has more than $300 billion in debt and is rushing to repay suppliers and creditors by selling assets and shares.

The business missed certain interest payments on its offshore notes last week.

Rating agencies declared its $19 billion in international notes in default after it missed a payment deadline last month.

Plans to refund investors in the company’s wealth management products have also been scaled back.

Evergande’s stock has lost about 90% of its value in the last year, as investors fear the company is on the verge of imploding under the weight of its debts.