Controversial China Evergrande shares halt trading

Surveillance cameras were seen near the headquarters of the China Evergrande Group in Shenzhen, Guangdong Province, China on September 26, 2021. REUTERS / Aly Song

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HONG KONG, JANUARY 3 (Reuters) – China Evergrande Group (3333.HK) shares will be suspended from trading on Monday, the difficult real estate developer said without giving any reason.

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 considered to be cross-credit by credit rating agencies last month after they missed payments.

The real estate developer missed out on $ 255 million in coupon payments due Tuesday , although both have a delay period of 30 days.

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The company has set up a risk management committee with many members from state-owned companies, and said they would engage actively with creditors.

On Friday, Evergrande rejected plans to repay investors in its asset management products, saying that each investor in the asset management product could expect to receive 8,000 yuan ($ 1,257) per month as a principal payment for three months, regardless of when the investment matures.

The move highlights the growing liquidity pressure on the property developer.

Shares of Evergrande fell 89% last year and closed at HK $ 1.59 on Friday.

Its EV unit China Evergrande New Energy Vehicle Group (0708.HK) plunged as much as 10% in early trading on Monday, while the property management unit Evergrande Services (6666.HK) fell 2.3%.

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Reporting by Clare Jim; Editing Tom Hogue and Shri Navaratnam

Our standards: Thomson Reuters Trust Principles.

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