Evergrande of China suspends listing plan of electric vehicle unit and shares fall


Evergrande’s electric vehicle unit shares fell in Hong Kong on September 27 after suspending plans for a second listing on Shanghai’s star market due to a “serious lack of funding.”

The pulled list is the latest blow to a unit that once had a higher stock market capitalization than Ford. This is because Evergrande’s liquidity crisis has disrupted the global market and has raised concerns among investors that it will not be repaid if the company defaults.

Evergrande New Energy Vehicle shares initially plummeted by about 25% before limiting losses to about 10%.

Heavy debt developers missed a $ 83.5 million coupon payment on one of their dollar-denominated bonds on September 24, with a 30-day grace period before official default.

The next major test in the bond market will take place on September 29, when interest payments of $ 47.5 million will be made on dollar bonds maturing in March 2024.

To prevent potential misuse of funds, at least two Chinese municipalities manage sales revenue from Evergrande’s real estate.

Fran Wan