Shares in China property firm Evergrande suspended pending 'major transaction'
Source: The Guardian and agencies
Shares in China property firm Evergrande suspended pending ‘major transaction’
Trading halt sends markets Asian stocks falling amid speculation debt-laden group will sell off property management arm
Ben Butler and agencies
Mon 4 Oct 2021 08.13 BST
Trading in shares of debt-laden China Evergrande has been suspended by the Hong Kong exchange after the enormous Chinese developer missed a key bond interest payment last week, its second offshore debt obligation in a week.
Evergrande, which has $305bn (£225bn) of debts, said on Monday trade was suspended “pending the release by the company of an announcement containing inside information about a major transaction”, sparking speculation it could sell its profitable property management unit.
Global Times, the Chinese state newspaper, reported that a rival property company, Hopson Development, was planning to buy a 51% stake in Evergrande’s property management unit for more than $5bn.
With liabilities equal to 2% of China’s GDP, Evergrande has triggered concerns its woes could spread through the financial system and reverberate around the world.
-snip-
Read more: https://www.theguardian.com/world/2021/oct/04/shares-in-china-property-giant-evergrande-suspended-after-debt-payments-missed