Evergrande shares fall after president cuts stake; Fantasia suspends her exchanges

A general view of Funian Plaza, a resort developed by Fantasia Holdings, in Shenzhen, Guangdong province, China, November 10, 2021. REUTERS / David Kirton

Register now for FREE and unlimited access to reuters.com

Register now

HONG KONG, Nov.29 (Reuters) – Shares of China Evergrande Group (3333.HK) fell 4.8% on Monday morning, after its chairman cut his stake in the cash-strapped real estate developer to raise around $ 344 million. Read more

The group’s electric vehicle unit, China Evergrande New Energy Vehicle Group Ltd (0708.HK), also fell more than 5% after saying the company was still exploring ways to inject capital into the unit with different investors.

Evergrande has struggled to raise capital as he grapples with over $ 300 billion in liabilities, and Chinese authorities have asked its president, Hui Ka Yan, to use some of his personal wealth to help pay bondholders, sources said.

Register now for FREE and unlimited access to reuters.com

Register now

Evergrande has not paid the coupons totaling $ 82.5 million due on November 6, and investors are eager to see if it can meet its obligations before a 30-day grace period ends on December 6.

The developer revealed Friday night that Hui had sold 1.2 billion shares of the company at an average price of HK $ 2.23 each, lowering its stake in the Shenzhen-based real estate developer to 67.9% from 77%. .

Once the best-selling developer in China, Evergrand’e’s woes have hit the Chinese real estate industry as a whole with a series of defaults and downgrades to its peers’ credit ratings over the past two months.

Fantasia Holdings (1777.HK) suspended trading in the company’s shares on Monday pending release of information. On Thursday, the developer said a liquidation petition had been filed against a unit linked to an outstanding loan.

Register now for FREE and unlimited access to reuters.com

Register now

Reporting by Sumeet Chatterjee; Editing by Stephen Coates

Our standards: Thomson Reuters Trust Principles.


Source link

Comments are closed.