Wednesday, October 27, 2021

Evergrande Jumps Even as Its Fate Remains Uncertain

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Stock Markets24 minutes ago (Sep 27, 2021 06:51AM ET)

(C) Reuters.

By Dhirendra Tripathi – Evergrande stock (HK:3333) closed 7.6% higher in Hong Kong trading Monday as the Chinese central bank repeated its determination to keep market conditions orderly, although the fate of the debt-laden Chinese real estate developer remained uncertain.

The company missed a payment deadline on a dollar bond during the previous week, triggering the start of a 30-day grace period. Interest on its 9.5% March 2024 dollar bond is due Wednesday, however.

Shares of the beleaguered company are down 83% this year.

Evergrande has liabilities of around $305 billion and is scrambling to raise funds to service them. The parent group’s troubles sabotaged a planned share sale by the group’s electric car unit on Monday: shares in China Evergrande New Energy Vehicle Group crashed 26% after it warned of an uncertain future unless it got a swift injection of cash.

Shares of another Chinese developer, Sunac China Holdings (HK:1918), closed 8.5% lower in Hong Kong after it sought “special policy support” from authorities in eastern Shaoxing because operations in the city have become difficult.

Evergrande Jumps Even as Its Fate Remains Uncertain

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