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Evergrande halted trading in its shares in Hong Kong as firm tries to raise cash

Evergrande halted trading shares
Image: Video Screenshot

According to the BBC, Chinese real estate giant Evergrande has halted trading in its shares in Hong Kong while investors await word on its restructuring plan.

The reason for the trading halt was not stated in the stock exchange statement.

Evergrande is in debt to the tune of more than $300 billion and is scrambling to raise funds by selling assets and shares in order to repay suppliers and creditors.

According to the report, the company scaled back plans to repay investors in its wealth management products last week.

On December 31, Evergrande announced that each investor in its wealth management product could expect to receive $1,257 in monthly principal payments for three months, regardless of when the investment matures.

The company had previously declined to specify a figure and had agreed to repay 10% of the investment when the product matured at the end of the month.

According to the BBC, Evergrande said in a statement posted on the wealth unit’s website that the situation was not “ideal” and that it would “actively raise funds” and update the repayment plan in late March.

The announcement was interpreted as emphasising the struggling property developer’s growing cash crunch.

Local media reported over the weekend that a city government on the Chinese resort island of Hainan had ordered the company on December 30 to demolish its 39 residential buildings there within 10 days due to their illegal construction.

Rating agencies declared the company’s $19 billion in international bonds in default after it missed a payment deadline last month.

About the author

Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala.




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