Chinese real estate giant Evergrande is closing down shares in Hong Kong

The infamous Chinese developer giant Evergrande announced on Monday that it will once again suspend trading in its shares in Hong Kong ahead of an announcement.

The country’s real estate company has struggled in the wake of Beijing’s efforts to curb excessive debt in the real estate sector as well as rampant consumer speculation.

Evergrande is drowning in $ 300 billion in debt and has been struggling to repay bondholders and investors after Beijing’s crackdown abruptly turned off liquidity taps.

“At the company’s request, trading in the company’s shares was stopped at 9 a.m. on January 3, 2022, pending the company’s release of an insider information release,” the group said in a brief statement in Hong Kong. the stock market.

It has previously seen a period of suspended stock trading already in October.

The troubled developer was labeled as in default by international credit rating agencies last month after it failed to repay debts on time.

Previous struggles to pay suppliers and contractors due to the debt crisis led to persistent protests from home buyers and investors at the group’s headquarters in Shenzhen in September.

Last week, Evergrande temporarily cheered investors by insisting that they could deliver tens of thousands of units this month and pay off some debts.

But its shares took a dive at the end of the week after a report that the group had failed to meet two more offshore payments.

In recent months, the company has repeatedly said it will close its unfinished projects and deliver them to buyers in a desperate attempt to save its debts, despite missing the previous payment of more than $ 1.2 billion.

But in a new headache for the company, local Chinese media reported over the weekend that they have been ordered to demolish 39 buildings by the authorities on the island of Hainan because the structures were built illegally on an artificial archipelago in the tourist center.

The bloated company has tried to sell assets and shave down its holdings in other companies, where Chairman Hui Ka Yan – known as Xu Jiayin in Mandarin – paid off some of the debts with his own significant personal wealth.

The provincial government in Guangdong – where the company is headquartered – is currently overseeing Evergrande’s debt restructuring process.

Evergrande’s misery has had repercussions throughout China’s real estate sector with some smaller companies also failing in loans and others struggling to find enough money.

Bloomberg News estimates that China’s real estate companies need to defer about $ 197 billion to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers in January.

(AFP)

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