Infotech

Evergrande suspends listing again



New trading suspension for Evergrande. The Chinese real estate giant, in great difficulty, suspended its listing on the Hong Kong markets on Monday morning, according to a press release from the stock market. The group announced that trading in the shares of Evergrande Property Services Group and China Evergrande New Energy Vehicle Group was “suspended” without giving an explanation. “As a result, trading of all structured products relating to the company will also be suspended at the same time,” said a notice posted on the Hong Kong Stock Exchange.

Chinese property developers have struggled following Beijing’s moves to curb the sector’s excessive leverage, as well as rampant consumer speculation. Evergrande, one of the largest developers, had to enter into restructuring negotiations after racking up more than $300 billion in debt.

Real estate crisis

The trading halt, the second this year, comes ahead of a $2 billion repayment obligation scheduled for Wednesday, and another of $1.4 billion next month. In December, international ratings agencies classified the struggling property developer as defaulter because it failed to repay its debts on time.

In September, real estate buyers and investors came to demonstrate in front of the headquarters in Shenzhen to express their concerns about the developer’s difficulties in honoring its obligations to suppliers and contractors.

In recent months, the company has repeated several times that it will complete the projects started, in a desperate attempt to save its debts. But authorities ordered him in January to demolish 39 illegally constructed buildings in the tourist area of ​​Hainan Island.

The group attempted to sell assets, and Chairman Hui Ka Yan repaid some of the debts using his personal fortune.

Evergrande’s difficulties have had repercussions for the entire Chinese real estate sector, with some small companies not repaying their loans and others struggling to find enough cash. The International Monetary Fund warned at the end of January that the real estate financing crisis could have repercussions on the economy in general and on world markets.

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