October 26, 2021

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Shares of Chinese real estate firm Evergrande have been suspended from trading

Published:

4 October 2021 01:43 GMT

It is currently the most indebted Chinese real estate company: it has liabilities in excess of $ 300,000 million, affecting more than 250 banks and non-banking institutions.

Shares of Evergrande, a Chinese real estate company on the verge of bankruptcy, stopped trading on the Hong Kong Stock Exchange on Monday after failing to pay interest on a key bond last week. Reports Reuters.

According to BloombergEvergrade guarantees an initial note of $ 260 million on October 3, issued by Jumbo Fortune Enterprises. Since the last date is Sunday, the effective date is Monday.

Non-payment of the principal bond is a default because the pledge note does not have a grace period, although five business days will be granted if it is due to an administrative and technical error.

On September 9, the company issued Repay installment loans in five yearsHowever, the project was widely rejected by investors. Last Sunday, he began paying his investors in wealth management products through real estate. As a result, its shares fell to $ 0.26 at the end of September.

Its share price rose 15% after the announcement last Wednesday 19.93% sale of shares $ 1.545 billion state-owned consortium from Zhengjing Bank Commercial Bank. As a result of this transaction, Evergrande’s stake in Schenjing Bank will fall from 34.5% to 14.57%.

A day later, the company processed First Fee 10% Within the framework of its commitment to investors. Refunded for wealth management products that expired on September 30th.

  • Evergrande is the most indebted Chinese real estate company listed on the Hong Kong Stock Exchange: it has liabilities $ 300 billionAfter years of borrowing to finance rapid growth, it has affected more than 250 banks and non-banks.
  • Given the size of the Asian giant’s second largest real estate company, Evergrande’s situation raises concerns that this could be the beginning of a real estate bubble and perhaps a Chinese financial crisis.
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