HONG KONG —
Shares in troubled actual property developer China Evergrande Group and its property administration unit Evergrande Property Companies have been suspended from buying and selling in Hong Kong.
The corporate’s filings didn’t specify why the shares had been stopped from buying and selling.
Cailian, a Chinese language on-line information service affiliated with the state-run newspaper Securities Instances, stated one other developer, Hopson Growth Holdings, was planning to accumulate a majority share in Evergrande Property Companies Group.
Buying and selling in Hopson’s shares additionally was suspended Monday in Hong Kong, “pending the discharge of announcement(s) in relation to a serious transaction of the corporate underneath which the corporate agreed to accumulate the shares of an organization . . . listed on the inventory trade,” it stated in a submitting.
Evergrande has been struggling to keep away from defaulting on billions of {dollars} of debt. The corporate owes billions to banks, clients and contractors and is going through a money crunch.
Its state of affairs worsened after the federal government tightened limits on company debt ranges.
The corporate ran up billions of {dollars} in debt constructing residence complexes, malls and workplace towers over time.
In August 2020, the federal government ordered tightened controls on financing for China’s 12 greatest builders, forcing them to cut back company debt masses which might be seen as a risk to the economic system.
Evergrande has been promoting off numerous property to attempt to alleviate the issue.
