Shares of Evergrande, the embattled Chinese real estate developer, have been suspended on the Hong Kong stock exchange, according to an announcement on Thursday. This follows reports that the chairman of the company has been placed under surveillance. Evergrande’s shares closed at 32 Hong Kong cents on Wednesday, and this is not the first time they have been suspended. Trading was halted for 17 months last year and only resumed at the end of August. The latest suspension comes after Evergrande delayed a debt restructuring meeting with creditors, citing underperforming sales and an investigation into its subsidiary Hengda Real Estate.
Earlier this month, Evergrande postponed its debt restructuring meeting, expressing the need to re-assess the terms to meet the company’s current situation and creditor demands. It also revealed that the investigation into its subsidiary, Hengda Real Estate, has prevented it from issuing new notes as part of the restructuring plan. Additionally, Evergrande’s unit is being investigated by the Chinese securities regulator for potential violations of information disclosure. These developments follow the recent detention of some staff at Evergrande’s wealth management unit. In August, the company filed for Chapter 15 bankruptcy protection in the U.S., allowing a U.S. court to intervene in its cross-border restructuring process.
The suspension of Evergrande’s shares on the Hong Kong stock exchange indicates further troubles for the Chinese real estate developer. With the chairman reportedly under surveillance, the company’s future remains uncertain. The delayed debt restructuring meeting and the investigation into its subsidiary have undermined its ability to address its financial challenges. This news follows the detention of staff in its wealth management unit and the earlier filing for bankruptcy protection. Evergrande’s turbulent situation continues to evolve, and investors will be closely monitoring the developments and potential impact on the broader real estate sector in China.