Evergrande quotes are extremely volatile after the resumption of trading – Kommersant
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Shares of Chinese property developer Evergrande jumped 42% at the opening of trading on the Hong Kong Stock Exchange, reaching HK$0.43. However, almost immediately the developer’s quotes corrected, losing about 10.5% of the morning value. At 10:30 Moscow time, the company’s shares are trading at HK$0.385.
Evergrande shares have not been traded for several days. They were suspended On September 28, after the company’s quotes collapsed by 20% the day before due to messagesthat the founder and chairman of the board of directors of Evergrande, Xu Jiayin, has been detained by the police and is under investigation.
Evergrande crisis continues from 2021. Then it became known about the holding’s serious financial problems. Company suspended shares trading on March 21, 2022. Evergrande then went through a complex restructuring process and resumed trading on August 28 after a 17-month hiatus.
However, already in September, the company’s shares fell twice by more than 20% due to continued investor concerns. And the ongoing investigation into Evergrande’s founder prevents the company from issuing new debt, which is preventing the implementation of its debt restructuring plan. Last week Reuters reported that a group of foreign creditors is ready to join a lawsuit to liquidate the troubled developer if it does not submit an updated restructuring plan by October 30.
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