Evergrande stock: China’s property developer suspended

Evergrande said in a filing to the Hong Kong Stock Exchange that its trading halt was pending “an inside information announcement”, although it did not elaborate.

the company Nearly $300 billion in total liabilities, and analysts have worried for months whether the collapse could trigger a broader crisis in China’s property market, hurting homeowners and the broader financial system. The US Federal Reserve warned last year that troubles in Chinese real estate could hurt the global economy.

In December, Fitch Ratings announced that the company had defaulted on its debt, with the credit rating agency downgrading that reflected Evergrande’s inability to pay interest on the $2-denominated bond that month.

The company’s stock passed more debt payment deadlines last week without any indication that it had met its obligations, although it reportedly has a 30-day grace period to pay off those loans. (Fitch’s downgrade came after Evergrande missed a payment after his grace period ended.)

Evergrande did not immediately respond to a request for comment. Regarding his decision to stop the shares on Monday.

World's most indebted property developer reports progress on completing homes
While the company’s financial woes are rising, it had some positive news last month, saying Preliminary progress was made in resuming construction work. The company’s president Hui Ka Yan said no one at the firm would be allowed to “lie down” and vowed to give away 39,000 units of assets in December.
She The company had delivered less than 10,000 units in the last three months, compared to a huge jump in numbers.

And, there are signs that Chinese officials are taking steps to stem the decline from the company’s downward spiral and guide it through a restructuring of its debt and business operations.

Evergrande announced in December that it would set up a risk management committee, including government representatives, to focus on “mitigating and eliminating” future risks. Its members include top executives from major state-owned enterprises in Guangdong, as well as executives from a major central government-owned bad debt manager.

The People’s Bank of China also said it would pump $188 billion into the economy, apparently to counter the real estate slowdown, which accounts for about a third of China’s GDP.

— Laura He contributed to this report.

    ,

Source link


What Do You Think About this News