Hong Kong Stock Exchange Suspends Trading of Evergrande Group Shares (Comprehensive)

Demolition Order for 39 Apartment Buildings on Artificial Island in Hainan
Forced Real Estate Investment Spurs Evergrande Group's Market Exit Intensification

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Trading of shares of China Evergrande Group, which is experiencing financial difficulties, has been suspended.

[Image source=Yonhap News]

Also, the authorities of Danzhou City, Hainan Province, have issued a demolition order for 39 apartment buildings under construction by Evergrande Group, signaling the full-scale market exit of Evergrande.

According to Chinese media including Sina on the 3rd, the Hong Kong Stock Exchange temporarily suspended trading of Evergrande Group shares at 9 a.m. local time that day. Chinese media reported that this suspension was at the request of Evergrande Group.

Evergrande Group also announced that it will suspend trading on the Hong Kong stock market until it discloses important internal information.

Earlier, in October last year, Evergrande Group had requested a trading halt during the process of attempting to sell its main subsidiary, the real estate management company Evergrande Property Services. In December last year, Evergrande failed to pay $82.5 million in interest on dollar bonds, and the international credit rating agency Fitch downgraded its credit rating to 'restricted default.'

Meanwhile, Chinese media reported that the Danzhou City authorities ordered the demolition within ten days of 39 apartment buildings that Evergrande Group is constructing on Haikou Haihuadao No. 2 Island (an artificial island) in Hainan, citing violations of the law.

Evergrande Group has invested a total of 160 billion yuan (approximately 30 trillion KRW) in the artificial island to build hotels, theme parks, shopping centers, and apartments. The buildings ordered for demolition were apartments planned to house 2,000 households.

Chinese media have raised the possibility that this demolition order violates Article 40 of the China Urban and Rural Planning Law. They also reported that Evergrande Group has not yet responded to the demolition order from the Danzhou City authorities.

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