Trading in troubled Chinese real estate company China Evergrande shares can be resumed soon.
China Evergrande has requested that its shares be bought and sold again on the Hong Kong Stock Exchange starting Thursday (October 21), the company announced on Wednesday. The company said it will continue to implement measures to mitigate liquidity issues, as stated in the interim report on August 30. Meanwhile, a partial sale of his property management business, which could have pumped billions into the cash register in the short term, has failed.
Shares of debt-laden real estate giant China Evergrande and its property management company were suspended on October 4 on the Hong Kong Stock Exchange. The background has been speculation about another large Chinese group joining the property management firm Evergrande Property Services. Such participation could alleviate Evergrande’s liquidity crunch in the short term and could be the first step towards the necessary restructuring of the group. According to press reports, the total value of Evergrande’s real estate services is more than 40 billion Hong Kong dollars (equivalent to 4.4 billion euros).
China Evergrande also announced that the sale of a majority stake in Evergrande Property Services to Hooplife Technology Group, a subsidiary of the holding company Hopson Development, has been halted. It said that based on information from various sources, there are reasons to believe that the buyer was not eligible for a public offer of shares in Evergrande Property Services.
This is the first time that its shares in a company owed more than $300 billion have been suspended. Shares of Evergrande Group are down nearly 80 percent this year amid his financial woes.
Evergrande is the world’s most indebted real estate company. There is an urgent need to raise funds so that you can pay your banks, suppliers and bondholders on time. The company is so big that some experts fear a “contagion risk” for the Chinese economy and beyond.
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Beijing (dpa-AFX)
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