Embattled Chinese property developer Evergrande shares halted, set to release ‘inside information’

HONG KONG – China Evergrande Group’s shares will be suspended from trading on Monday until “inside information” is released, the contested property developer said without further explanation.

Evergrande, the world’s most heavily indebted developer, is struggling to repay more than $ 300 billion in debt, including nearly $ 20 billion in international market bonds that ratings firms considered defaulted last month after they did Missed payments.

The company has set up a risk management committee with many members of state-owned companies and has announced that it will actively deal with its creditors.

Local media reported over the weekend that on December 30, a city government on the Chinese holiday island of Hainan Evergrande ordered the demolition of its 39 residential buildings for illegal construction work within 10 days.

The buildings covered 435,000 square feet, the reports added, citing an official notice to Evergrande’s unit in Hainan.

Evergrande did not respond to requests for comment on Hainan’s development.

The Evergrande Group is one of the largest Chinese manufacturers of apartments, office towers and shopping centers. (Qilai Shen / Bloomberg via Getty Images)

On Friday, Evergrande withdrew plans to repay investors in its wealth management product, saying that any investor in its wealth management product can expect to receive 8,000 yuan ($ 1,257) per month in principal for three months, regardless of when the investment is due will.

The move underlines the worsening liquidity bottleneck at the property developer.

“The market is watching progress in the Evergrande divestment of assets to repay its debt, but the process will take time,” said Conita Hung, director of investment strategy at Tiger Faith Asset Management.

“And the demolition order in Hainan will violate the trust of small homebuyers in the company.”

Evergrande said last week that 91.7 percent of its national projects have resumed construction after a three-month effort. Many projects were previously stopped after the developer failed to pay its many suppliers and contractors.

Evergrande’s shares lost 89 percent last year, closing at HK $ 1.59 on Friday.

EV unit China Evergrande New Energy Vehicle Group reversed early losses, up 6 percent by late morning on Monday, while property management unit Evergrande Services declined 3 percent.

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