Trading in the shares of the indebted property developer China Evergrande Group had been suspended on the Hong Kong Stock Exchange Monday morning as the corporate raced to ship flats to tens of millions of dwelling consumers and lift money to handle its $300 billion in debt.
Evergrande mentioned in a submitting that its shares had been halted pending an announcement “containing inside information,” with out giving extra particulars. The firm had halted its shares as soon as earlier than, in October, because it tried to finalize the sale of a $2.6 billion stake in its property administration unit.
That deal in the end fell by means of.
The big property developer entered into default final month after failing to make a ultimate debt fee to overseas buyers. The firm owes an estimated 1.6 million flats to dwelling consumers and is going through dozens of lawsuits.
Although Evergrande has but to resolve its money squeeze, it pledged final week to complete constructing 39,000 flats earlier than the top of 2021. The announcement despatched Evergrande shares hovering, however they dropped the subsequent day after the corporate failed to satisfy one other fee deadline on its overseas debt.
On Friday, Evergrande appeared to revise its plan to repay buyers in its wealth administration unit, promising to make month-to-month funds of about $1,260 to every investor for 3 months. It had beforehand not given a selected compensation quantity. In its assertion to wealth administration buyers on Friday, Evergrande mentioned that it plans to “actively raise funds,” and added that the scenario was not “ideal.”
At one level, as many as 80 % of Evergrande workers had been requested to place cash into wealth administration merchandise to assist fund its operations. In September, Evergrande workers, contractors and residential consumers protested outdoors firm places of work and authorities buildings.
Government officers joined a danger committee created in December to assist steer Evergrande and restructure the corporate.