The trading of the Chinese share was suspended today, Monday (3/1) Evergrande, pending the announcement “Internal information”, as he stated the troubled real estate company, without giving further explanations.
The Evergrande, that is the most indebted real estate development company in the world, finds it difficult to repay its debts in excess of $ 300 billion, including nearly $ 20 billion in international bonds that rating agencies considered last month to have defaulted on non-payment. The Chinese company did not proceed to pay new coupons, worth $ 255 million, last Tuesday, although there is a grace period of 30 days for them.
Evergrande has recommended one risk management committee, in which many members from state-owned companies participate, and announced that it will actively discuss with its creditors. Local media reported over the weekend that the government of the Chinese island of Hainan ordered the Evergrande on December 30. to demolish its 39 residential buildings within 10 days, due to illegalities in their construction. These buildings were spread out in area of 435,000 square meters, according to reports citing an official recommendation at the Evergrande plant in Hainan.
On Friday, Evergrande downplayed its plans to repay investors in wealth management products, saying each investor could receive 8,000 yuan ($ 1,257) a month as a three-month capital payment, regardless of when the investment ends. . This move highlights how deep is the liquidity pressure of the Chinese company, according to the APE-MPE.
Evergrande announced last week that 97.1% of its national projects have been restarted after three months of efforts. Many projects had previously been halted after the company was unable to pay its key suppliers and contractors. The company’s stock lost 89% of its value last year, closing on Friday at Hong Kong $ 1.59.
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