Embattled China Evergrande shares halt trading
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, 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.
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.
Shares of Evergrande shed 89% last year, closing at HK$1.59 on Friday.
Its EV unit China Evergrande New Energy Vehicle Group plunged as much as 10% in early trading on Monday, while property management unit Evergrande Services declined 2.3%.
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