https://ift.tt/3zr5s5x Evergrande To Release ‘Inside Information’, Share Trading Suspended – Cryptovibes.com – Daily Cryptocurrency and FX News

Pending the release of “inside information”, China Evergrande Group (3333.HK) shares have been suspended from trading from January 2, the embattled property developer said without elaborating.

In December 2021, after it missed payments, Evergrande, the world’s most indebted developer, is grappling to repay more than $300 billion in liabilities, including nearly $20 billion of international market bonds that were deemed to be in cross-default by rating firms.

The property developer missed new coupon payments worth $255 million due December 28, though both have a 30-day grace period. With many members from state companies, the firm has set up a risk management committee and said it would actively engage with its creditors.

Due to illegal construction, Evergrande was ordered on December 30 to demolish its 39 residential buildings within 10 days by a city government in the Chinese resort island of Hainan, according to the local media report over the weekend.

Citing an official notice to Evergrande’s unit in Hainan, the buildings stretched over 435,000 square meters. On matters regarding the Hainan development, Evergrande did not respond to requests for comment.

Evergrande’s plans to repay investors in its wealth management products on Friday were dialed back, saying each investor in its wealth management product could expect to receive 8,000 yuan ($1,257) per month as principal payment for three months irrespective of when the investment matures.

The deepening liquidity squeeze at the property developer is highlighted by the move. Conita Hung, investment strategy director at Tiger Faith Asset Management, said:

“The market is watching the asset disposal progress from Evergrande to repay its debt, but the process will take time. And the demolition order in Hainan will hurt the little homebuyer confidence remained in the company.”

Last week, Evergrande said that after three months of effort, 91.7% of its national projects have resumed construction. Previously, following the developer’s inability to pay its many suppliers and contractors, many projects were halted.

Last year, Evergrande shares shed 89%, closing at HK $1.59 on December 31.

While property management unit Evergrande Services (6666.HK) turned around from the red to rise 1%, its electric vehicle (EV) unit China Evergrande New Energy Vehicle Group (0708.HK) also reversed early losses to rise 14% in the early afternoon trade on Monday.