The listing of the ultra-indebted Chinese developer Evergrande resumed on Monday on the Hong Kong Stock Exchange with a collapse at the opening of the stock markets, after 17 months of suspension for not publishing its financial results. The title plummeted 86.67% at the opening.
Trading “resumed today at 09:00 a.m. (Monday, 01:00 GMT), according to a note posted on the Hong Kong Stock Exchange website, after Evergrande announced on Friday that it had “met” the conditions. imposed for the resumption by the stock market, including the publication of its results.
The company said in a statement on Friday that it had “complied with the recovery guidelines” established by the stock exchange. The title’s listing was halted in March 2022, because the company, in dire straits, had not published its 2021 results.
Stock Market Green Light
The annual results for 2021 and 2022 were finally published last month and it is for this reason that the stock market gave the green light to the resumption of trading.
Going forward, the company will work to “mitigate risks” and “strive to ensure delivery of real estate,” Evergrande said in its Sunday statement. The group also says it relies on its electric car and real estate services arms to ensure its growth.
Founded in 2019, the automaker Evergrande NEV immediately showed its ambition to compete with and surpass the American Tesla in five years. But the situation of its parent company has severely affected its projects and its cash flow.
In addition to Evergrande, other Chinese real estate groups are also struggling. Setbacks at Chinese developer Country Garden, long reputed to be financially sound and now deep in debt, raise fears of a bankruptcy with immeasurable consequences for China’s financial system.
Source: BFM TV
