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Trading in China Evergrande Units Halted in Hong Kong

Shares of embattled property developer China Evergrande Group were suspended from trading on Monday, ahead of a major repayment due on Wednesday


China Evergrande
Evergrande said in a filing it would use the proceeds to repay construction fees of 920.7 million yuan for projects in Hangzhou. Photo: Reuters.

 

Shares of embattled property developer China Evergrande Group were suspended from trading on Monday, a filing from the Hong Kong stock exchange showed.

Trading was also halted in shares of its property services unit, Evergrande Property Services Group Ltd, and electric vehicle unit, China Evergrande New Energy Vehicle Group Ltd, exchange filings showed.

The filings gave no further details.

Evergrande, the world’s most indebted developer with over $300 billion in liabilities, has been struggling to repay its suppliers and creditors and complete projects and homes.

Its flagship unit Hengda Real Estate Group secured approval from its onshore bondholders over the weekend to delay a coupon payment due last September to September 2022, according to the company lawyer’s filing to the Shenzhen Stock Exchange on Sunday.

Hengda held a meeting with creditors of the 4 billion yuan ($629 million) 2025 bond on March 18-19 to approve the payment of interests incurred between September 2020 to September 2021 to be made in September 2023.

Evergrande has so far avoided technical bond defaults onshore, though it has missed payments on some offshore bonds.

This is a second suspension for the group this year, and comes ahead of an expected $2 billion repayment which is reportedly due on Wednesday. It then faces another $1.4 billion repayment next month.

Evergrande shares traded at HK$1.65 before the suspension. They have gained 3.8% this year after plunging 89% in 2021.

 

• Reuters with additional editing by Jim Pollard

 

 

ALSO on AF:

 

China Property Default Rate Far Higher Than Stated: Goldman

 

Evergrande Meets Onshore Bondholders to Delay Coupon Payment

 

China Evergrande Default Triggers Brawl Over Local Assets

 

 

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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