Trading of China Evergrande shares is suspended, preparing to release “inside information” Reuters

© Reuters. File photo: The China Evergrande Center Building logo appears in Hong Kong, China on September 23, 2021. REUTERS/Tyrone Siu/File Photo

Claire Jim

HONG KONG (Reuters)-The troubled real estate developer said trading in China’s Evergrande shares was suspended on Monday, awaiting the release of “insider information.”

As the most indebted developer in the world, Evergrande is working hard to repay more than 300 billion U.S. dollars in debt, including nearly 20 billion U.S. dollars in international market bonds, which were deemed cross-defaulted by rating companies for non-payment last month.

The real estate developer missed the payment of new coupons worth $255 million that expired last Tuesday, but both have a 30-day grace period.

The company has established a risk management committee with members from state-owned enterprises and said it will actively engage with creditors.

Local media reported over the weekend that a municipal government in the Chinese resort town of Hainan had ordered Evergrande to demolish 39 of its residences within 10 days on December 30 due to illegal construction.

The report added that these buildings have an area of ​​more than 435,000 square meters, and cited the official notice of Evergrande’s Hainan unit.

Evergrande did not respond to a request for comment on Hainan Development.

On Friday, Evergrande cancelled its plan to repay investors in its wealth management products, stating that no matter when the investment expires, every investor in its wealth management products is expected to receive 8,000 yuan (US$1,257) per month within three months. Principal payment.

This move highlights the increasingly tight liquidity of the real estate developer.

Conita Hung, director of investment strategy at Tiger Faith Asset Management, said: “The market is paying attention to Evergrande’s asset disposal for debt repayment, but this process will take time.”

“The demolition order in Hainan will undermine the confidence in the company’s small house purchases.”

Evergrande said last week that after three months of hard work, 91.7% of its projects nationwide have resumed construction. After the developer failed to pay its many suppliers and contractors, many projects were previously stopped.

Evergrande’s share price fell 89% last year and closed at HK$1.59 on Friday.

Its electric vehicle division, China Evergrande New Energy Automobile Group, reversed early losses in early Monday afternoon trading, rising 14%, while property management division Evergrande Services also turned losses into profits, rising 1%.

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