'Hengda' Plunges 12% Intraday Amid 'Default Countdown'

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The stock price of Evergrande, China's second-largest real estate developer that officially warned of a default crisis, plunged on the Hong Kong stock market on the 6th.

As of 1:45 PM on the 6th, Evergrande was trading at 1.97 Hong Kong dollars on the Hong Kong Stock Exchange, down 12.44% from the previous trading day.

In a disclosure filed with the Hong Kong Stock Exchange on the 3rd, Evergrande stated that it had been asked by creditors to fulfill a debt guarantee obligation of 260 million dollars (about 307.5 billion KRW), but repayment might be difficult.

Separately, if Evergrande fails to pay 82.5 million dollars (about 97.6 billion KRW) in dollar bond interest by the day, it will officially default.

Major Chinese tech stocks listed on the U.S. stock market, including Didi Chuxing which decided to delist from the New York Stock Exchange, also plunged together on the day.

Alibaba, the leading stock, fell more than 8% during the session, and Baidu, JD.com, Bilibili, NetEase, and Trip.com also showed a downward trend.

Amid this negative atmosphere, the Hang Seng Index opened at 23,420.44, down 1.46% from the previous trading day. The Shanghai Composite Index and the Shenzhen Component Index fluctuated in a slightly positive range during the session, influenced by the Chinese government's claim that the Evergrande default crisis would have a limited impact on the overall domestic economy.

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