Monday. 08.08.2022
LIQUIDITY CRISIS

Shares of Chinese developer Evergrande suspended on HK exchange

Evergrande is the world's most indebted real estate group

FILED - A scene from a Beijing construction project. The head of Chinese real estate group Evergrande, which is threatened with collapse, told employees in a letter that he is convinced the "darkest moment" can be overcome. Photo: picture alliance / dpa
A scene from a Beijing construction project. Photo: picture alliance/dpa.

Shares of troubled Chinese developer Evergrande have been suspended on the Hong Kong stock exchange.

In a statement released on Monday, Hong Kong Stock Exchange did not give a reason.

"Due to the suspension of trading in the underlying shares, trading in Futures & Options for China Evergrande Group(EVG) have been suspended until further notice," the statement read.

It is the first time in the company's history that its shares have been suspended from trading amid its recent liquidity crisis.

Evergrande is the world's most indebted real estate group, with debts equivalent to more than 300 billion dollars.

Offshore bond

The liquidity crisis intensified after it failed to make an 83.5-million-dollar interest payment on an offshore bond.

The group is so big that some experts fear a contagion risk for the Chinese economy and beyond.

Last week Evergrande sold bank shares worth 10 billion yuan (1.55 billion dollars) in an effort to stay afloat.

Shares of Chinese developer Evergrande suspended on HK exchange
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