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China Evergrande share trading suspended on Hong Kong exchange

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China Evergrande share trading suspended on Hong Kong exchange

Share trading of distressed property giant China Evergrande was suspended in Hong Kong on Monday ahead of a “major transaction” announcement. The company faces default, with debts exceeding $300 billion.

“At the request of the company, trading in the shares of the company was halted at 9am on October 4, 2021 pending the release by the company of an announcement containing inside information about a major transaction,” the debt-laden company said in a statement to the exchange.

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The step sparked major speculation that one of China’s biggest developers could sell its profitable property management unit. 

Later, China’s Global Times reported that the ailing corporation would sell a 51% stake in its property management unit to Hopson Development for more than $5 billion. 

Hopson, one of the five largest real estate companies in China, also requested a trading halt pending an announcement related to a major acquisition of a Hong Kong-listed firm.

Last week, Evergrande missed a key bond payment and the group faces deadlines on dollar bond coupon payments totaling $162.38 million in the next month.

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China to plunge into power crunch as looming Evergrande default sends shockwaves through financial sector – media

As Evergrande’s overall liabilities equal nearly 2% of China’s gross domestic product, its dire finances have sparked deep concerns that a possible default could send shock waves through the country’s financial system and even reverberate around the world.

For more stories on economy & finance visit RT's business section

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