Evergrande shares in China hit their lowest level in 11 years after giving no guarantees on repayments – .

0
12
Evergrande and EV unit shares surge after president reports business change – .


A traffic light is seen near the headquarters of the China Evergrande group in Shenzhen, Guangdong province, China on September 26, 2021. REUTERS / Aly Song

Register now for FREE and unlimited access to reuters.com

HONG KONG, Dec. 6 (Reuters) – Shares of China Evergrande Group (3333.HK) fell 12% to an 11-year low on Monday after the company said there was no guarantee it would would have enough funds to repay the debt, prompting the Chinese authorities to summon its president.

Shares fell as a 30-day grace period on a $ 82.5 million coupon payment due Nov.6 ends Monday.

Evergrande, once the best-selling developer in China, is struggling with over $ 300 billion in liabilities. A collapse could send shockwaves through the country’s real estate industry and beyond.

Register now for FREE and unlimited access to reuters.com

In a document filed Friday night, Evergrande, the world’s most indebted developer, also said it had received a demand from creditors to pay around $ 260 million.

This prompted the government of Guangdong province, where the company is based, to summon Evergrande chairman Hui Ka Yan, and he later said in a statement that he would send a task force to the developer at the Evergrande’s request to oversee risk management, strengthen internal controls and maintain normal operations.

In a series of seemingly coordinated statements late in the evening, China’s central bank, banking and insurance regulator, and its securities regulator sought to reassure the market that any risk to the broader real estate sector could be contained.

The short-term risks caused by a single real estate company will not undermine the fundraising in the market in the medium to long term, the People’s Bank of China said, adding that home sales, land purchases and financing ” have already returned to normal in China ”.

Evergraned stock fell more than 12% to HK $ 1.98, its lowest since May 2010.

Register now for FREE and unlimited access to reuters.com

Register

Reporting by Clare Jim; Editing by Anne Marie Roantree and Christopher Cushing

Our Standards: Thomson Reuters Trust Principles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here