Evergrande returns to the stock market and makes a leap forward in values
Shares of property developer China Evergrande Group , in a precarious financial situation, soared on Tuesday after it resumed trading in Hong Kong following a suspension last week.
By midday, Evergrande shares were up nearly 16% after jumping more than 60% earlier in the session. Prices therefore stabilized between +20% +22%.
The leap forward is interesting, but still remains minimal compared to the loss in value that has occurred in the last two years, given that, at the time, the value was above 20 HKD.
Evergrande is the most indebted real estate company in the world and is at the center of a real estate market crisis that is dragging down China's economic growth.
The company's shares were suspended from trading last week as it confirmed that Chinese police were investigating its chairman, Hui Ka Yan, on "suspicion of illegal crimes".
An affiliate, Evergrande Property Services, also resumed trading on Tuesday, according to a notice posted on the Hong Kong Stock Exchange.
However, trading in the shares of China's Evergrande New Energy Vehicle Group remained suspended "pending the release of an announcement in relation to inside information" of the company, a notice to the Hong Kong stock exchange said. Both units halted trading last week. This division, which should deal with electric cars, seeks to
China Evergrande said in a statement last week that authorities had informed the company that its chairman, Hui Ka Yan, had been subjected to "mandatory measures in accordance with the law due to suspicion of illegal crimes."
Evergrande is the most indebted real estate company in the world and is at the center of a real estate market crisis that is dragging down China's economic growth.
Last month, Evergrande said it had to delay a proposed debt restructuring meeting with creditors because "group sales have not been as expected by the company." It also admitted that it could not issue new debt because its subsidiary, Hengda Real Estate, was under investigation.
Last month, a former Chinese official estimated that not even China's population of 1.4 billion could fill all the vacant homes across the country. This enormous overabundance of housing, combined with a series of risky financial moves, risks bringing the well-being of millions of Chinese families to its knees.
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The article Evergrande returns to the stock market and makes a leap forward in values comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/evergrande-torna-in-borsa-e-fa-un-salto-in-avanti-nei-valori/ on Tue, 03 Oct 2023 07:00:12 +0000.