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Evergrande halts shares trading in its group and units amid scrutiny of its chairman’s whereabouts Published: 10:20am, 28 Sep, 2023
China Evergrande Group Chairman Hui Ka Yan at a press conference on the property developer’s annual results in Hong Kong on March 28, 2017. Photo: Reuters
China Evergrande Group halted the trading of its shares, along with the stock of two of its subsidiaries, amid intense scrutiny of the property developer’s chairman and founder Hui Ka-yan.
Shares of China Evergrande Group, Evergrande Property Services and China Evergrande New Energy Vehicle Group would be suspended from trading today, according to a statement to the Hong Kong stock exchange, without giving a reason.
Evergrande’s halt after emerging from a 17-month suspension barely a month ago, is heating up some of China’s social media platforms with discussions about the fate of the world’s most indebted property developer. Some argued the penny stock is worth a punt before another bid to beat the drop. Others said bankruptcy may be inevitable.
The drama took another turn for the worse when the developer’s major onshore unit, Hengda Real Estate Group, failed to repay a 4-billion yuan (US$547 million) note on Monday, an obligation among US$327 billion of liabilities choking the home builder. It is talking to bondholders about a solution on a “non-evasion of debt” basis.
The unit is already being investigated by regulators for market breaches, a transgression that crippled Evergrande’s ability to sell and list new bonds in offshore markets under China’s capital market rules. Several former executives have been detained over missing funds, local media outlet Caixin Global reported on Monday.
