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China Evergrande EV Unit Shares Jump On Business Shift

Shares in China Evergrande Group’s electric vehicle unit rose as much as 5.8%, but the parent company’s stock plunged by similar level.


The Evergrande logo is seen outside the China Evergrande Centre in Hong Kong. Photo: Reuters.

 

Shares in China Evergrande Group‘s electric vehicle (EV) unit rose as much as 5.8% early on Tuesday, extending gains from the previous day as the cash-strapped developer said it would prioritise the growth of its EV business.

China Evergrande, however, reversed early gains and fell by about 6% in morning trading.

China Evergrande, reeling under more than $300 billion in liabilities, averted a costly default last week with a last-minute bond coupon payment, buying it more time to head off a looming debt crunch with its next major payment deadline on Friday.

  • Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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