China Evergrande Group, the embattled Chinese real estate developer, has once again made headlines as its shares were suspended on Thursday by Hong Kong’s exchange. This suspension follows a series of setbacks for the company, including a delay in a debt restructuring meeting with creditors earlier this month.
According to Bloomberg News, the chairman of Evergrande has reportedly been placed under surveillance. This news further adds to the turmoil surrounding the company, which has been struggling with mounting debt and financial difficulties.
Evergrande’s shares last closed at 32 Hong Kong cents on Wednesday before the suspension. This is not the first time that the company’s shares have been suspended. Trading was previously suspended in March last year and only resumed trading on August 28, after a 17-month hiatus.
The recent delay in the debt restructuring meeting has raised concerns among creditors. Evergrande stated in a filing that its sales have not met expectations since the debt restructuring announcement in March, leading to the need for a reassessment of the proposed restructuring terms.
In addition, the company revealed that it was unable to issue new notes under its debt restructuring plan due to an investigation into its subsidiary, Hengda Real Estate. This further complicates Evergrande’s financial situation and raises questions about its ability to overcome its current challenges.
The suspension of Evergrande’s shares and the surveillance of its chairman highlight the deepening crisis facing the company. Investors and creditors are closely watching the developments as they could have significant implications for China’s real estate sector and the broader economy.
As the situation unfolds, market analysts and experts continue to monitor Evergrande’s path forward. The company’s ability to navigate its financial struggles and address its outstanding debts will be crucial in determining its future and the potential impact on the Chinese economy.