Business Standard

Chinese developer Evergrande stops trading on Hong Kong Stock Exchange

Trading in the shares of China's majoThe suspension is the second one this year and comes ahead of the Wednesday USD 2 billion repayment obligation

People’s Bank of China Governor Yi Gang said authorities can contain risks posed to the Chinese economy and financial system from the struggles of China Evergrande Group. (Photo: Reuters)

(Photo: Reuters)

Trading in the shares of China's major property developer, Evergrande Group, was suspended on the Hong Kong stock exchange on Monday.
The suspension is the second one this year and comes ahead of the Wednesday USD 2 billion repayment obligation.
Trading in Evergrande shares (stock code 03333) is being suspended starting 9:00 a.m. on March 21 and all structured products relating to the company will also be halted from trading at the same time, Sputnik reported citing a notice to the stock exchange.
So far, no specific reason was given for the decision. Last year, Evergrande was on the brink of default after years of growth and active borrowing.
Experts believe that a high-risk business model and Beijing's actions to curb the boom in the Chinese housing market brought the company into crisis.
The developer is reeling under more than USD 300 billion of total liabilities, including about USD 19 billion in offshore bonds held by international asset managers and private banks on behalf of their clients, reported CNN.
Earlier, government officials were sent in to the company to oversee a restructuring, but there's little clarity about what comes next. Evergrande has appealed for more time, but some lenders appear unwilling to wait.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 21 2022 | 2:08 PM IST

Explore News