China Evergrande Resumes Trading on Hong Kong Stock Exchange... Opens with 10.5% Sharp Drop

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Shares of Evergrande (恒大·Hengda), China's second-largest real estate developer, plunged on the 21st, the day trading resumed, as the risk of default grew larger after failing to sell subsidiary shares.

On the Hong Kong Stock Exchange that day, Evergrande opened the market down 10.51% at 2.64 Hong Kong dollars.

Evergrande applied for the resumption of stock trading on the Hong Kong Stock Exchange the previous day. Prior to this, Evergrande shares had been suspended from trading since the 4th.

Evergrande announced late the previous night that negotiations to sell a 50.1% stake in its property management subsidiary, Evergrande Property Services, to real estate developer Hopson Development (合生創展·He Sheng Chuang Zhan) had fallen through.

Evergrande had planned to secure $2.6 billion (approximately 3 trillion won) through this deal. Currently, Evergrande's debt exceeds 300 trillion won.

With the deadline for Evergrande's dollar bond interest payment scheduled for the 23rd just two days away, the setback in securing assets has heightened concerns over Evergrande's default risk.

This content was produced with the assistance of AI translation services.