The Hong Kong Stock Exchange did not say why it has suspended trading in Evergrande shares, but there is speculation that another major developer may buy out the company's property management unit. Shares of the embattled Chinese developer Evergrande were suspended on the Hong Kong stock exchange early Monday amidst heightened speculation about a potential sale. "Due to the suspension of trading in the underlying shares, trading in Futures & Options for China Evergrande Group (EVG) have been suspended until further notice," the Hong Kong Stock Exchange said in a statement, without listing a reason. This is the first time that the shares of the company, once China's top-selling developer, have been suspended. Evergrande is currently the world’s most indebted real estate group with debts surmounting billions. It could face one of China's largest-ever restructurings. The latest development comes as a Chinese financial news service, Cailian, said Evergrande’s property management unit may be taken over by another major developer.
How much does Evergrande owe? According to reports, Chinese regulators requested Evergrande avoid a near-term default on its dollar bonds and the nearly $83.5 million (€71.1 million) in dollar-bond interest payments due last month. At the same time, reports also said the central government had alerted local governments that the property giant could collapse. The payments that were due were on a $2 billion offshore bond and a $47.5 million dollar-bond. Evergrande's bonds would default if the company fails to settle the interest payment it owes within 30 days. In total, the company owes $305 billion (€262.7 billion) in the next two years. Reports said Evergrande had stopped paying staff and factory suppliers in its electrical vehicle unit.
0 Comments
Leave a Reply. |
Thank you for choosing to make a difference through your donation. We appreciate your support.
This website uses marketing and tracking technologies. Opting out of this will opt you out of all cookies, except for those needed to run the website. Note that some products may not work as well without tracking cookies. Opt Out of CookiesCategories
All
Archives
April 2024
|