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China Evergrande shares halted, set to release 'inside information'


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China Evergrande shares halted, set to release 'inside information'

Reuters.png  EconomyJan 03, 2022 
 
 
 
China Evergrande shares halted, set to release 'inside information'© Reuters. FILE PHOTO: The China Evergrande Centre building sign is seen in Hong Kong, China, September 23, 2021. REUTERS/Tyrone Siu/File Photo

By Clare Jim

HONG KONG (Reuters) - China Evergrande Group shares have been suspended from trading on Monday pending the release of "inside information", the embattled property developer said without elaborating.

Evergrande, the world's most indebted developer, is struggling 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 ratings firms last month after it missed payments.

The property developer missed new coupon payments worth $255 million due last Tuesday< VG162759965=>, though both have a 30-day grace period.

The firm has set up a risk management committee with many members from state companies, and said it would actively engage with its creditors.

Local media reported over the weekend a city government in the Chinese resort island of Hainan had ordered Evergrande on Dec. 30 to demolish its 39 residential buildings within 10 days, due to illegal construction.

The buildings stretched over 435,000 square meters, the reports added, citing an official notice to Evergrande's unit in Hainan.

Evergrande did not respond to request for comment on the Hainan development.

On Friday, Evergrande dialled back plans to repay investors in its wealth management products, 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 move highlights the deepening liquidity squeeze at the property developer.

"The market is watching the asset disposal progress from Evergrande to repay its debt, but the process will take time," said Conita Hung, investment strategy director at Tiger Faith Asset Management.

"And the demolition order in Hainan will hurt the little homebuyer confidence remained in the company."

Evergrande said last week 91.7% of its national projects have resumed construction after three months of effort. Many projects were halted previously after the developer failed to pay its many suppliers and contractors.

 

Shares of Evergrande shed 89% last year, closing at HK$1.59 on Friday.

Its EV unit China Evergrande New Energy Vehicle Group reversed early losses to rise 14% in early afternoon trade on Monday, while property management unit Evergrande Services also turned around from the red to rise 1%.

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Shares Suspended From Trading in Hong Kong: Evergrande Update

Bloomberg_new.png  Stock MarketsJan 03, 2022 
 
 
 
© Bloomberg. The construction site of a China Evergrande Group development in Wuhan, China, on Wednesday, Dec. 22, 2021. Defaulter China Evergrande Group is prioritizing payments to migrant workers and suppliers as regulators demand that the developer head off risk of social unrest. Photographer: Andrea Verdelli/Bloomberg© Bloomberg. The construction site of a China Evergrande Group development in Wuhan, China, on Wednesday, Dec. 22, 2021. Defaulter China Evergrande Group is prioritizing payments to migrant workers and suppliers as regulators demand that the developer head off risk of social unrest. Photographer: Andrea Verdelli/Bloomberg

(Bloomberg) -- China Evergrande Group announced its shares will be suspended from trading on the Hong Kong stock exchange on Monday without giving a reason. 

Cifi Holdings, a Chinese property developer, offered to buy its outstanding 5.5% bond due in 2022 at $1,000.5 for each $1,000 in principal amount plus accrued and unpaid interest. 

Key Developments:

  • Evergrande Suspends Trading in Hong Kong
  • China Developers’ 2022 Home-Sales Recovery Could Be Challenging
  • Developer Cifi Offers to Purchase Outstanding 5.5% 2022 Bond

Evergrande Suspends Trading in Hong Kong (8:58 a.m. HK)

The company gave no reason for the trading suspension.

China Evergrande on Friday dialed back payment plans on billions of dollars of overdue wealth management products as its liquidity crisis showed little sign of easing.

Developer Cifi Offers to Purchase Outstanding 5.5% 2022 Bond (7:52 a.m. HK)

Cifi Holdings offered to buy the outstanding notes at $1,000.5 for each $1,000 in principal amount plus accrued and unpaid interest, it said in a statement to the Hong Kong stock exchange.

The Chinese developer will determine the aggregate principal amount of notes that it will accept for purchase. The offer to buy the $505.1 million of notes that remain outstanding will expire at 4pm London time on Jan. 7.

©2022 Bloomberg L.P.

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