October 18, 2021

Property giant China EverGrande has suspended Hong Kong’s market trading.

China Evergrande suspended trading of its assets on the Hong Kong Stock Exchange for no reason on Monday.

The company’s stock has fallen nearly 80 percent since the beginning of the year as it struggles under a mountain of debt and is on the brink of collapse.

“Trading in shares of China Evergreen Group will be suspended,” it said in a statement to the exchange. “Accordingly, all structural products related to the company will also be barred from trade at the same time.”

Shares of its Electric Vehicle Company, which scrapped a proposed listing in Shanghai last week, were not suspended, although it fell 6 percent in early trade.

The firm’s officials are struggling to cope with a crisis that has left it with more than 300 300 billion in debt, raising fears of a contagious disease for the wider Chinese economy. I can spread some warnings globally.

Last week, it said it would sell a چینی 1.5 billion stake in a regional Chinese bank to raise much-needed capital, as it struggled to pay interest to bondholders.

Beijing has remained silent on the realities of the real estate empire, but state media have reacted differently to the mood towards a private company that has been in debt in the years leading up to the rise of Chinese real estate.

Authorities have asked local governments to prepare for a possible end to Evergrande, with reports suggesting a major state bailout is unlikely.

Lack of liquidity has sparked public outrage and rare protests outside its offices in China as investors and suppliers demand their money back.

The group has acknowledged facing “unprecedented challenges” and warned that it will not be able to fulfill its responsibilities.

The country’s real estate sector has been under scrutiny in recent months, with regulators last year announcing caps for three different debt ratios in a scheme called “Three Red Lines”.

Copyright AFP All rights reserved.

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