© Reuters. FILE PHOTO: The corporate brand is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Tune/File Photograph
By Clare Jim
HONG KONG (Reuters) -Shares of China Evergrande (HK:) Group shed 86.7% early on Monday when buying and selling resumed following a 17 month suspension, after saying it had “adequately” fulfilled all steering issued by the Hong Kong Inventory Trade.
Evergrande, the world’s most-indebted property developer, is on the centre of a disaster in China’s property sector that since late 2021 has seen a string of debt defaults.
Its shares listed in Hong Kong traded as little as HK$0.22 on Monday, with its market capitalisation shrinking to HK$3.2 billion ($408.02 million).
The inventory had been suspended since March 21, 2022. Its Hong Kong-listed items, China Evergrande New Vitality Car Group and Evergrande Property Companies Group have each resumed buying and selling prior to now month after a 16 month halt.
The resumption of buying and selling in all three firms is essential for Evergrande Group as a result of its offshore debt restructuring plan consists of swapping a part of the debt into equity-linked devices backed by them.
Evergrande would have confronted delisting if the suspension had reached 18 months.
The commerce resumption additionally got here after the developer on Sunday reported a narrower internet loss for the primary half of the yr on account of an increase in income.
($1 = 7.8427 Hong Kong {dollars})
