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China’s Evergrande shares fall into reopened trading after $ 2.6 billion trading collapses

File Photo: The company logo will be displayed at the China Ever Grande Group headquarters in Shenzhen, Guangdong Province, China on September 26, 2021. REUTERS / Aly Song / File Photo

October 21, 2021

Claire Jim

Hong Kong (Reuters)-China’s Evergrande shares fell 14% on Thursday after a deal was signed to sell $ 2.6 billion in real estate services. market.

Evergrande said on Wednesday that it had canceled its contract to sell a 50.1% stake in Evergrande Property Services Group Ltd to Hopson Development Holdings Ltd. This is because smaller rivals do not meet the “prerequisites for making a general offer”.

Hopson is liable for frustration as he states that “no entity exists” for the termination of Evergrande’s sales contract and seeks options to protect its legitimate interests. It looked like.

The deal collapsed second for developers after two sources told Reuters that the $ 1.7 billion sale of Hong Kong headquarters failed in buyers’ concerns about Evergrande’s dire financial situation.

The latest setback also occurs shortly before the expiration of the 30-day grace period for Evergrande to pay $ 83.5 million in offshore bond coupon payments. At this point, China’s most debt-ridden developers are considered by default.

Trading in China Evergrande, its real estate services division, and Hopson’s stock all resumed on Thursday after a two-week or more suspension. China Evergrande reduced opening losses, down 6% in early transactions, but down 5.7% in the real estate services sector. Hopson shares fell 0.3%.

As China’s best-selling developer and currently in debt of over $ 300 billion, government officials argue that Evergrande’s problems will not run wild and cause a broader financial crisis. It came to be.

Separately, Modern Land (China) Co Ltd said it has stopped seeking investor consent to extend the maturity of dollar bonds due on October 25. The company’s stock was closed on Thursday.

(Report by Claire Jim, Written by Anne-Marie Lonetree, Edited by Jacqueline Wong and Christopher Cushing)



China’s Evergrande shares fall into reopened trading after $ 2.6 billion trading collapses

Source link China’s Evergrande shares fall into reopened trading after $ 2.6 billion trading collapses

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