Evergrande shares volatile as trading resumes after suspension

Evergrande share price initially jumped more than 60% when trading resumed before dropping again. Evergrande shares were last trading up 18.75% at HK$0.38. The stock has lost around 75% of its value since August.

Last Thursday, the world’s most indebted developer Evergrande shares were suspended after a report that its chairman and founder, Hui Ka Yan, had been placed under police surveillance. The company later said in a statement that Hui was being investigated.

Also Read: China property crisis: Know about rise and fall of Evergrande Founder Hui Ka Yan | Explainer

The once top Chinese developer has been embroiled in a debt crisis that reached a turning point when it defaulted on its offshore debt obligations in late 2021, sending jitters through global markets amid fears of contagion, Reuters reported.

(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

Evergrande had estimated debts of $328 billion at the end of June.

The crisis intensified last month when the developer said it was unable to issue new debt due to an ongoing investigation in its subsidiary Hengda Real Estate Group. It also shelved its key meetings planned for debt restructuring.

Also Read: China Evergrande shares suspended, China may have some learnings from US, India says Uday Kotak

Reuters reported last Tuesday that a major Evergrande offshore creditor group was planning to join a liquidation court petition filed against the developer if it does not submit a new debt revamp plan by the end of October.

The developer is scheduled to have a hearing on a winding up petition on October 30.

Catch Live Market Updates here

“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

Updated: 03 Oct 2023, 12:55 PM IST