The indebted Chinese property giant, Evergrande, announced today that it has suspended trading of its listed securities on the Hong Kong Stock Exchange, without providing further details.
The group reported this suspension, which also affects “all structured products related to the company,” in a statement issued through the Hong Kong stock exchange, which returned to activity today after a three-day hiatus.
The company climbed 15% on the stock market last Wednesday after announcing the sale of a large part of its shares in a bank to a state-owned company and after the debt rating agency Fitch downgraded the group’s long-term debt rating due to uncertainty over its offshore bonds.
The group’s parent company has lost 78.3% since the beginning of the year and experts believe that its future could involve a restructuring whereby projects would be passed to other developers to ensure their completion before a state-owned company acts as a “strategic investor” to solve the group’s financing problems.
While what happens in the future with Evergrande still remains in the realm of speculation, Fitch last week downgraded the long-term issuer risk rating of indebted Chinese real estate giant Evergrande from ‘CC’ to ‘C’, the third lowest level on its ladder.
At the end of June, according to data provided by the group, its total liabilities exceeded $300 billion, of which it has to repay $37 billion in loans before the end of the first half of 2022.