Business

Evergrande shares fall after the sale of service units collapses

China’s Evergrande shares plunged as Chinese real estate developers reopened trading on Thursday after the real estate services division’s sale plans had collapsed.

Evergrande’s Hong Kong-listed stock fell 13.6% after the two-week suspension, while its affiliate Evergrande Property Services, which was frozen during the same period, fell 10.2%.

The stake in the developer’s electric vehicle subsidiary Evergrande New Energy Vehicle has been trading in Hong Kong uninterrupted for the past few weeks, down 14%.

Evergrande, the world’s most indebted real estate developer Stopped trading Evergrande Property Services advised in its filing with the exchange at the time that it was expecting a “possible general offer” for its shares.

During the stock suspension, Evergrande did not comment on the outlook for the transaction or on five omissions to international bondholders totaling $ 275 million.

The developer broke the silence late Wednesday, Reveal the transaction The sale of 50.1% of the real estate services sector to HK $ 20 billion ($ 2.6 billion) to Hopson Development Holdings ended last week.

The company’s share price fell about 12% on Thursday, curbing early losses. Stock prices have fallen by more than 80% this year, with a market capitalization loss of more than $ 190 billion.

Evergrande said the transaction was canceled because the buyer “did not meet the prerequisites” and “had a reason to believe” to make the offer. Hopson said in the filing that he was “ready to complete the sale,” but did not want to pay the unit directly until the obligation between the latter and Evergrande was resolved.

Faced with more than $ 300 billion in debt, Evergrande is struggling to deal with the liquidity crisis. Health of the Chinese real estate industry..

Disclosures and requests for resumption of transactions Financial Times revealed Evergrande’s stock suspension helped boost the value of suspended Hong Kong-listed stocks to a record $ 61 billion or more, raising investor concerns about the exchange’s corporate governance.

Evergrande has also dealt with a series of unpaid payments. At first On September 23, a 30-day grace period expired on Saturday was triggered.

Evergrande said Wednesday that the grace period “has not expired” Sale of shares of local Chinese lenders, “No significant progress has been made regarding the sale of the Group’s assets.”

Dicky Wong, Head of Research at Kingston Securities, said:

Evergrande’s first omission of payment Dollar Bond Yield Chinese publishers have skyrocketed to the highest level in more than a decade, but developers Fantasia and Sinick Holdings have Default Bonds worth a total of $ 452 million.

Evergrande shares fall after the sale of service units collapses

Source link Evergrande shares fall after the sale of service units collapses

Back to top button