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Oil prices rise to new highs and UK petrol prices hit record highs – Business Live | Work

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Chinese stocks Evergrande Real estate rose Monday morning after the embarrassed company chairman showed that he would focus on the growing electric vehicle sector in the future, rather than the troubled core real estate business.

With a debt of about $ 305 billion, the company managed to avoid costly defaults last week as it came up with funds to pay interest on bonds at the last minute.

Evergrande shares have so far risen 6% during trading on Monday, but electric vehicle shares – China Evergrande New Vehicle Energy Group – Evergrande’s share price is now flat as the two companies later lost some of their profits, although at some point they jumped 17% after the chairman of Evergrande announced that they would make new car ventures their main business. is.

According to state media, Xu Jiayin said on Friday that electric vehicles will overtake the former real estate focus of the business within the next decade. This is a strategy that has been seen as popular with investors.

Bloomberg Asia
(@BloombergAsia)

China’s Evergrande electric vehicle unit share soars after debt-bearing real estate giant chairman says building such a car will be its main business within 10 years https://t.co/OIHN0D3l49


October 25, 2021

Evergrande’s car business was founded in 2019, but has not yet exhibited the planned model and has not sold a single car.

Evergrande, China’s second-largest real estate developer, announced in September that it may not be able to pay many creditors, including homebuyers, building contractors, banks and offshore investors. Sounded a warning to the financial markets.

On Friday, the company was reported to have wired a $ 83.5 million bond interest payment that it missed in September.

Reuters
(@Reuters)

Some Evergrande bondholders received tranche source coupon payments on September 23 https://t.co/CjjTk3SUgR pic.twitter.com/3RSdvR4Q9C


October 25, 2021

Evergrande said on Sunday that it resumed work on 10 projects in 6 cities, including Shenzhen. Due to delays in payments to suppliers and contractors, some construction was suspended during the summer.

Jonathan Chen
(@JChengWSJ)

Good news, homebuyers. Evergrande said it will resume construction of more than 10 real estate projects after barely paying US dollar-denominated bonds last week. In addition, a huge soccer stadium of Guangzhou Football Club will be completed.https://t.co/T7R7KOy8b0


October 25, 2021

However, China’s national media reported on Monday that the spillover of the country’s real estate debt to the financial industry was controllable, but Evergrande’s concerns have not been completely resolved.

In a comment on the Chinese economy released by Xinhua News Agency, real estate companies may be facing default due to poor management or misalignment, including information from “related departments” and “authoritative people.” Was reported. Market changes.

agenda

  • 9 AM BST: Germany’s ifo Business Climate Index for October
  • 2:00 pm BST: Bank of England MPC member Tenreyro will speak at the Center for Economic Policy Research’s Conference on International Trade, Global Supply Chain and Monetary Policy.
  • 10pm BST: Facebook Announces Third Quarter Results



Oil prices rise to new highs and UK petrol prices hit record highs – Business Live | Work

Source link Oil prices rise to new highs and UK petrol prices hit record highs – Business Live | Work

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