Evergrande shares plunge as a lot as 87% as buying and selling resumes after 17 months

  • China Evergrande Group was final traded on the Hong Kong inventory trade at HK$1.65 (US$0.13) per share on March 18, 2022 earlier than being suspended on March 21.
  • The corporate additionally posted a lack of 39.25 billion yuan ($5.38 billion) within the six months ended June, and complete liabilities had been 2.39 trillion yuan.

NANJING, CHINA – AUGUST 18, 2023 – Aerial photograph exhibits a residential space of ​​Evergrande in Nanjing, east China’s Jiangsu Province, August 18, 2023. (Picture by Costfoto/NurPhoto by way of Getty Photos)

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Shares on the earth’s most indebted property developer, China Evergrande Group, plunged as a lot as 87% at Monday’s open, buying and selling for the primary time since March 21, 2022.

Shares fell as little as 22 HK cents on Monday, in comparison with their final shut of HK$1.65 per share on March 18, 2022.

The resumption of buying and selling comes as the corporate posted a lack of 39.25 billion yuan ($5.38 billion) within the six months ended June, a smaller loss in comparison with the lack of 86.17 billion yuan in the identical yr interval of the earlier yr.

Income was 128.81 billion yuan, up from 89.28 billion yuan in June 2022.

In July, the ailing firm filed for Chapter 15 chapter safety in a US court docket, which protects its US belongings from collectors whereas it really works on a restructuring deal elsewhere.

In his submission to Hong Kong Evergrande introduced on the inventory trade that it had complete liabilities of two.39 trillion yuan as of June this yr, down barely from the two.44 trillion yuan within the six months ended June 30, 2022.

As of June, Evergrande had complete belongings of 1.74 trillion yuan, together with money, money equivalents and restricted money of 13.4 billion yuan.

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Evergrande defaulted in 2021 and introduced an offshore debt restructuring program in March after struggling to finish tasks and repay suppliers and lenders.

Earlier this yr, the corporate posted an general lack of $81 billion in its long-overdue earnings report.

Web losses for 2021 and 2022 had been 476 billion yuan and 105.9 billion yuan, respectively, attributable to property depreciation, land restitution, losses on monetary belongings and financing prices, the corporate stated.

In 2020, earlier than the corporate defaulted on funds, Evergrande posted internet revenue of 8.1 billion yuan.

– CNBC’s Sumathi Bala and Elliot Smith contributed to this report.


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