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Evergrande: Stocks suspended from trading in Hong Kong

2022-01-03T03:18:18.712Z


The concerns of the Chinese real estate company Evergrande are worsening: The company's shares are no longer traded on the Hong Kong stock exchange - there was no official reason.


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Amusement park in front of Evergrande building in Shanghai

Photo: ALEX PLAVEVSKI / EPA

Evergrande has been in serious financial difficulties for months.

Now the shares of the ailing Chinese real estate company have been suspended from trading on the Hong Kong Stock Exchange on Monday.

The exchange announced this without giving any further reasons.

The real estate developer's share prices had plummeted by almost 90 percent last year.

Most recently, in addition to Fitch, Standard & Poor's (S&P), the second international rating agency, downgraded Evergrande's creditworthiness - to credit default in some areas and thus one step ahead of complete default.

At the same time, other Chinese real estate companies got into trouble, while the long booming market gave way.

Evergrande has more than 300 billion dollars in debt and, according to insiders, again missed payment deadlines shortly before New Year's Eve.

Evergrande had to service new coupon payments worth $ 255 million on two bonds dated June 2023 and 2025.

There is a 30-day grace period for both payments.

The real estate giant itself warned of possible payment difficulties in early December.

After a financial review, no guarantee can be given that the group will have sufficient funds to meet its financial commitments, the company said.

The state obviously does not want to intervene to help

The rating agency Fitch has therefore already warned of an impending payment default.

Such a step could have significant consequences not only for the Chinese real estate and financial markets.

Still, Evergrande can hardly hope for help from the state.

China's central bank chief Yi Gang recently signaled that the government in Beijing does not want to come to the aid of the group with rescue measures.

According to the central bank, Yi Gang said that Evergrande's risks were a "market operation" that was "appropriately handled according to the principles of the market and the rule of law."

jok / dpa

Source: spiegel

All business articles on 2022-01-03

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