China’s Evergrande shares fell again in open trade after a decline in turnover of $ 2.6 billion

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File photo: The company logo is displayed at the China Ever Grande Group headquarters in Shenzhen, Guangdong Province, China on September 26, 2021. Reuters / Ellie Song / FILE PHOTO

21 October 2021

Claire Jim

HONG KONG (Reuters) – China’s Evergrande shares fell 14% on Thursday after a deal was signed to sell $2.6 billion in real estate services. Market.

Evergrande on Wednesday said it has canceled its contract to sell a 50.1% stake in Evergrande Property Services Group Ltd to Hopson Development Holdings Ltd. This is because smaller rivals do not meet the “conditions necessary to make a general offer”.

Hopson is responsible for the frustration as he states that “no entity exists” for the termination of Evergrande’s sales contract and seeks alternatives to protect his legitimate interests. it looked like.

Two sources told Reuters the deal fell second for developers after the $1.7 billion sale of the Hong Kong headquarters failed amid concerns from buyers about Evergrande’s dire financial situation.

The latest setback also comes shortly before the end of a 30-day grace period for Evergrande to pay $83.5 million in offshore bond coupon payments. At this point, China’s most debt-ridden developers are believed to be in default.

Trading in China Evergrande, its real estate services division and Hopson’s stock resumed Thursday after a suspension of two weeks or more. China Evergrande narrowed opening losses, down 6% in early transactions, but down 5.7% in the real estate services sector. Hopson shares fell 0.3%.

As China’s best-selling developer and currently over $300 billion in debt, government officials argue Evergrande’s problems won’t go wild and lead to a wider financial crisis. is it done.

Separately, Modern Land (China) Co., Ltd. said it has stopped seeking investor consent to extend the maturity of the dollar bond due on October 25. The company’s stock was closed on Thursday.

(Reporting by Claire Jim, Writing by Anne-Marie Lonetri, Editing by Jacqueline Wong and Christopher Cushing)

China’s Evergrande shares fell again in open trade after a decline in turnover of $ 2.6 billion

Source Link Shares of China’s Evergrande plunge after $2.6 billion in trading after reopening

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