Evergrande Suspends Trading Of Shares In Hong Kong


Evergrande suspended trading in Hong Kong as a heavily indebted company.

Evergrande said in a filing to the Hong Kong Stock Exchange that its trading halt was pending an

"announcement containing inside information," though it did not elaborate.

The company has about $300 billion in total liabilities.

For months, analysts have worried about whether a collapse could trigger a broader crisis in China's property market.

In addition, the US Federal Reserve warned last year that trouble in Chinese real estate could damage the global economy.

In December, Fitch Ratings declared that it had defaulted on its debt.

The credit rating agency's downgrade reflected Evergrande's inability to pay the interest due that month on two dollar-denominated bonds.

The company's stock was rattled last week after more debt payment deadlines passed without signs that it had met its obligations.

Though it reportedly has a 30-day grace period to pay those debts.

Evergrande did not immediately respond to a request for comment about its decision to halt shares Monday.

The company's financial woes have been mounting.

Last month, it did have some positive news, saying it had made initial progress in resuming construction work.

Hui Ka Yan said that no one at the firm would be allowed to "lie flat" and vowed to deliver 39,000 properties in December.

That number was a massive jump compared with the fewer than 10,000 units.

The company had delivered in each of the previous three months.

There are signs that Chinese authorities are taking steps to contain the fallout from its downward spiral.

Guide it through restructuring its debt and business operations.

Evergrande announced in December that it would set up a risk management committee.

Including government, representatives to focus on "mitigating and eliminating" future risks.

Among its members are top officials from major state-owned enterprises in Guangdong.

An executive from a significant lousy debt manager owned by the central government.

The People's Bank of China also said it would pump $188 billion into the economy.

Apparently, to counter the real estate slump, which accounts for nearly a third of China's GDP.

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