Shares of China Evergrande Group were suspended on Thursday, according to an announcement from Hong Kong’s exchange. This comes as the chairman of the embattled Chinese real estate developer has reportedly been placed under surveillance. Evergrande’s shares last closed at 32 Hong Kong cents on Wednesday. It is worth noting that this is not the first time the company’s shares have been suspended, as trading was previously suspended in March last year and only resumed in August this year after a 17-month hiatus.
Earlier this month, Evergrande postponed a debt restructuring meeting with creditors, citing disappointing sales since its March debt restructuring announcement. The company stated that it needs to re-assess the proposed restructuring terms to align with its current financial situation and the demands of creditors. Additionally, Evergrande revealed that it cannot issue new notes under its debt restructuring plan due to an investigation into its subsidiary Hengda Real Estate. These developments further add to the challenges that Evergrande is facing amidst its significant debt problem.
The suspension of Evergrande’s shares and the news of its chairman being under surveillance indicate the deepening troubles faced by the company. Moreover, the delay in the debt restructuring meeting and the inability to issue new notes highlight the obstacles in the company’s efforts to address its financial difficulties. With Evergrande being a major player in the Chinese real estate market, these developments have broader implications for the industry and investors. It remains to be seen how the situation will further unfold and impact the company’s future.