Business & Economy

Evergrande shares surge more than 20% in Hong Kong

Shanghai, China, Sep 23 (EFE).- Shares of Chinese real estate giant Evergrande listed in Hong Kong soared more than 20 percent in the first few minutes of the trading session on Thursday.

At 10 am, after half an hour of trading, the company’s shares rose 22.47 percent to HK$2.78 ($0.36 dollars).

In the preceding minutes, the company’s share price had surged more than 31 percent.

Despite the rebound, the value of Evergrande’s share at the Hong Kong stock market has fallen more than 40 percent in the last month and over 80 percent since the beginning of the year.

The Hong Kong stock exchange was closed on Wednesday for a public holiday as markets around the world kept an eye on Evergrande, whose problems in meeting interest payments on its bonds have raised fears about the company’s dire financial condition.

Investors seem to have received with some optimism the announcement of the group’s main subsidiary, Hengda Real Estate Group Co. Ltd, on Wednesday that it would make the $36 million interest payment on its Shenzhen-traded 5.8 percent September 2025 bond on time.

However, the company has not yet confirmed whether it will also do the same for its offshore dollar bonds.

The deadline for an $83.5 million interest payment on bonds issued in dollars expires on Thursday.

The Chinese housing giant is also due to pay another $47.5 million in interest before Sep. 29. EFE


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