China Evergrande's 2nd Largest Shareholder 'Huayin Real Estate' Trading Halted in Hong Kong After Stock Surge (Update)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Chinese second-largest real estate company Evergrande Group's second-largest shareholder, Chinese Estate, had its trading suspended shortly after its stock price surged on the Hong Kong stock market.

On the 29th, Bloomberg reported that Chinese Estate's stock price surged 33% compared to the previous trading day to 2.90 Hong Kong dollars on the Hong Kong stock market, and trading was suspended immediately afterward.

The media reported that the reason for the trading suspension was not disclosed.

Earlier, Evergrande Group, which is facing a debt default crisis, announced on the morning of the same day that it would sell its 19.93% stake in China Shengjing Bank held by its subsidiary. If this sale process is completed, Evergrande is expected to secure about 1.8 trillion won in funds.

This move is interpreted as Evergrande Group, which is on the brink of bankruptcy, selling non-core assets to raise liquidity. At the same time, there is also an interpretation that a government-level restructuring of Evergrande Group has begun in China.

Currently, Evergrande Group's debt amounts to $302 billion (approximately 358 trillion won).

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