Business & Economy

Evergrande suspends securities trading on Hong Kong Stock Exchange

Beijing, Sep 30 (EFE).- The indebted Chinese real estate giant Evergrande said Monday it had suspended trading of its securities listed on the Hong Kong Stock Exchange, without offering further details on the matter.

The group reported this suspension, which also affects “all structured products related to the company,” in a statement issued through the Hong Kong stock market, which returned to activity Monday after a three-day hiatus.

The company climbed 15 percent on the stock market Wednesday after announcing the sale of a large part of its shares in a bank to a state company and after the debt rating agency Fitch lowered the rating of the group’s long-term debt due to the uncertainty about its offshore bonds.

The group’s parent company has lost 78.3 percent since the beginning of the year and experts believe its future could go through a restructuring with which projects would be passed on to other promoters. This is to guarantee their completion before a state company acts as an “strategic investor” to solve the group’s financing problems.

While Evergrande’s future remains uncertain, Fitch last week downgraded the long-term issuer risk rating of indebted Chinese real estate giant Evergrande from “CC” to “C,” the third lowest level of its rank.

At the end of June, according to the data provided by the group, its total liabilities exceeded $ 300 billion, of which it has to repay $ 37 billion in loans before the end of the first half of 2022. EFE


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