Evergrande Group shares plunged 12% to their lowest value in 11 years on Monday (6), after the company said it does not guarantee it will have sufficient funds to pay off debts, prompting Chinese authorities to convene its president .
Shares declined as the 30-day grace period for an $82 million (about R$460 million) payment expires on Monday.
Evergrande, once China’s most successful developer, is struggling with more than $300 billion (BRL 1.7 trillion) in liabilities. A collapse could seriously affect the country’s real estate industry and beyond.
In a filing last Friday night, Evergrande, the world’s most indebted developer, also said it had received a request from creditors to pay about $260 million (about R$1.4 billion).
This prompted the government of Guangdong Province, where the company is headquartered, to convene Evergrande President Hui Ka Yan and send a working group to the developer to oversee risk management, strengthen internal controls and maintain normal operations. .
In a series of seemingly coordinated statements, China’s central bank, banking and insurance regulator and its securities regulator sought to reassure the market of any risk.
Reference: CNN Brasil
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