Experts believe that a high-risk business model and Beijing’s actions to curb the boom in the Chinese housing market brought the company into crisis….reports Asian Lite News
Trading in the shares of China’s major property developer, Evergrande Group, was suspended on the Hong Kong stock exchange on Monday.
The suspension is the second one this year and comes ahead of the Wednesday USD 2 billion repayment obligation.
Trading in Evergrande shares (stock code 03333) is being suspended starting 9:00 a.m. on March 21 and all structured products relating to the company will also be halted from trading at the same time, Sputnik reported citing a notice to the stock exchange. So far, no specific reason was given for the decision. Last year, Evergrande was on the brink of default after years of growth and active borrowing.
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Experts believe that a high-risk business model and Beijing’s actions to curb the boom in the Chinese housing market brought the company into crisis.
The developer is reeling under more than USD 300 billion of total liabilities, including about USD 19 billion in offshore bonds held by international asset managers and private banks on behalf of their clients, reported CNN.
Earlier, government officials were sent in to the company to oversee a restructuring, but there’s little clarity about what comes next. Evergrande has appealed for more time, but some lenders appear unwilling to wait. (ANI)
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