Hong Kong stock exchange suspends trades of debt-ridden Evergrande - FRANCE 24 English

Add France 24 to your home screen
© 2022 Copyright France 24 – All rights reserved. France 24 is not responsible for the content of external websites. Audience ratings certified by ACPM/OJD.
Issued on: 04/10/2021 – 04:46
Trading in shares of heavily indebted China Evergrande was suspended on Monday, days after some bondholders said the property developer at the centre of jitters over China’s financial system had missed a second key bond interest payment.
Shares of its unit Evergrande Property Services Group were also suspended, the Hong Kong stock exchange said. The bourse didn’t say why trading in the companies’ stock had been halted, and it was unclear who had initiated the suspension.
Evergrande did not immediately respond to a request for comment.
With liabilities stretching into hundreds of billions of dollars, equal to 2% of China’s gross domestic product, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world. Initial worries have eased somewhat after China’s central bank vowed to protect homebuyers’ interests.
Monday’s share trading suspension sent a shiver through broader financial markets, which remain nervous about contagion, knocking the offshore yuan a little lower and weighing on the Hang Seng benchmark index and especially financials and other developers. Guangzhou R&F Properties Co Ltd fell 7%, Sunac China Holdings and Country Garden each fell 4%.
Shares in Evergrande have plunged 80% so far this year, while its property services unit has dropped 43% as the group scrambles to raise funds to pay its many lenders and suppliers.
Stock in its electric vehicle unit, China Evergrande New Energy Vehicle Group, fell as much as 8% early on Monday before paring losses.
>> Evergrande’s collapse would have ‘profound consequences’ for China’s economy
The cash-strapped group said on Sept. 30 that its wealth management unit had made a 10% repayment of wealth management products (WMPs), which are largely owned by onshore retail investors, that were due by the same date.
Once China’s top-selling property developer and now expected to be the subject of one of the largest-ever restructurings in the country, Evergrande has been prioritising domestic creditors over offshore bondholders.
The two offshore payments, which bondholders said failed to arrive by their due date, come as the company, which has nearly $20 billion in offshore debt, faces deadlines on dollar bond coupon payments totalling $162.38 million in the next month.
Beijing is prodding government-owned firms and state-backed property developers to purchase some of Evergrande’s assets, sounding them out either directly or indirectly about asset purchases, people with knowledge of the matter told Reuters last week.
Meanwhile Chinese property group Hopson Development said in a statement on Monday it had suspended trading in its shares, pending an announcement related to a major acquisition by Hopson of a Hong Kong-listed firm and a possible mandatory offer.
It was unclear whether the deal was related to Evergrande Group, and Hopson did not respond to a request for further comment.
Shares of Hopson, which has a market value of HK$60.4 billion ($7.8 billion), have jumped 40% so far this year.
Daily newsletterReceive essential international news every morning
Take international news everywhere with you! Download the France 24 app
China's Evergrande bondholders in limbo as debt deadline passes
Evergrande’s collapse would have ‘profound consequences’ for China’s economy
China's Evergrande strikes deal to avoid default on key bond
Sri Lanka declares state of emergency amid street protests over economic crisis
US imposes fresh sanctions on N. Korea in response to missile launches
Sri Lankan security forces deployed in capital after a day of protests, unrest
Pakistan PM Imran Khan's future in doubt as no-confidence vote looms
Afghan women’s rights groups vow mass protests if Taliban keep girls’ schools shut
Shanghai to lock down in phases to tackle Covid-19 outbreak
Second black box found at China Eastern Airlines crash site
Myanmar junta chief vows to ‘annihilate’ opponents of 2021 coup
‘Open the schools’: Afghan women protest against Taliban reversal on education
US imposes new sanctions after North Korea test-fires ICBM
UN chief 'strongly condemns' North Korea's intercontinental ballistic missile launch
Black box of crashed China Eastern airliner found
Girls' schools in Afghanistan ordered to shut just hours after reopening
The content you requested does not exist or is not available anymore.


By admin

Leave a Reply

Your email address will not be published.