The China Evergrande Center sign seen on the front of their building.
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China Evergrande Group The stock was suspended from trading on Monday pending the release of “insider information,” the stranded property developer said without elaborating.
Evergrande, the world’s most indebted developer, is struggling to pay off more than $300 billion in debt, including nearly $20 billion in international market bonds that have been deemed cross-defaulted by rating firms. last month after they missed payments.
The real estate developer missed out on new $255 million coupon payments due last Tuesday, though both have a 30-day grace period.
The company has set up a risk management committee with members from state-owned companies and said it will actively engage with its creditors.
Local media reported over the weekend that the city government in the Chinese resort island of Hainan ordered Evergrande on December 30 to demolish 39 residential buildings within 10 days due to illegal construction. .
The buildings span more than 435,000 square meters, the reports added, citing an official notice to Evergrande’s unit in Hainan.
Evergrande did not respond to a request for comment on Hainan’s development.
On Friday, Evergrande reverted to a plan to repay investors in its wealth management products, saying each investor in its wealth management product could receive 8,000 yuan. currency ($1,257) per month as principal payments for three months regardless of when the investment matures.
This move shows the deepening liquidity squeeze of real estate developers.
“The market is watching the progress of assets from Evergrande to repay debt, but this process will take a long time,” said Conita Hung, chief investment strategist at Tiger Faith Asset Management.
“And the demolition order in Hainan will hurt meager homebuyers’ confidence in the company.”
Evergrande said last week 91.7% of its national projects were back in construction after three months of effort. Many projects have been halted previously after the developer failed to pay many of its suppliers and contractors.
Evergrande shares are down 89% last year to close at HK$1.59 on Friday.
Its EV unit China Evergrande New Energy Vehicle Group reversed initial losses to rise 14% in early afternoon trading on Monday, while property manager Evergrande Services also turned around from levels increase to 1%.
