[ad_1]
Hong Kong-China’s Evergrande Group shares were suspended on Monday until “inside information” was released, a confused real estate developer said without detail.
Evergrande, the world’s most debt-rich real estate developer, has over $ 300 billion in debt, including nearly $ 20 billion in international market bonds that were considered cross-default by rating agencies after the company missed payments last month. I’m having a hard time paying back.
Developers missed $ 255 million worth of new coupons last Tuesday, both with a 30-day grace period.
The company has set up a risk management committee consisting of many members of state-owned enterprises and said it will be actively involved with creditors.
Local media reported over the weekend that the city government of Hainan, a resort island in China, ordered Evergrande to demolish 39 homes within 10 days due to illegal construction on December 30.
The building spanned more than 435,000 square meters (107.5 acres), the report added, citing official notices to Evergrande’s troops in Hainan.
Evergrande did not respond to requests for comment on Hainan development.
On Friday, Evergrande dialed back plans to repay investors in wealth management products, with each investor in wealth management products paying 8,000 yuan per month for a three-month principal, regardless of when the investment matured. You can expect to receive (about $ 1,257).
The move highlights the growing liquidity pressures on real estate developers.
Connie Tahun, Director of Investment Strategy at Tiger Face Asset Management, said:
“And the dismantling order in Hainan will undermine the trust of the small homebuyers remaining in the company.”
Evergrande said last week that 91.7% of domestic projects resumed construction after three months of effort. Many projects were previously discontinued after developers neglected to pay many suppliers and contractors.
Evergrande’s share price fell 89% last year, closing at HK $ 1.59 ($ 0.20) on Friday.
Its EV unit, China Evergrande New Energy Vehicle Group, reversed its early losses on Monday afternoon trading, rising 14%, and its real estate management unit, Evergrande Services, also rose 1% from the deficit.
Claire Jim
follow
[ad_2]