December 6, 2023

Evergrande has suspended trading, again:


An Evergrande Metropolis (or Evergrande Mingdu) community is pictured on February 17, 2020 in Huai'an, Jiangsu Province of China. Photographer: Zhao Qirui/VCG via Getty Images

China’s property giant has suspended trading in Hong Kong again, this is according to a notice from the stock exchange. China’s property firms have struggled in the wake of Beijing’s drive to curb excessive debt in the real estate sector. The suspension — the second this year — comes ahead of an expected $2 billion repayment obligation on Wednesday, and another next month of $1.4 billion. Earlier struggles to pay suppliers and contractors due to the debt crisis led to sustained protests from homebuyers and investors at the group’s Shenzhen headquarters in September. The firm has tried to sell assets, with chairman Hui Ka Yan paying off some of the debts using his own personal wealth. The International Monetary Fund warned in late January that the property funding crisis could have spillover effects on the broader economy and global markets.


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