Shares of Evergrande Dipped Sharply amid Scrapped Deal to Divest $2.6 Billion Stake

Evergrande shares plunged on first day of trading after being halted for three week

Shares of Evergrande China plunged as much a 12% after news hit the market about much anticipated deal to sell of its property-management arm has been scrapped along with group’s property sales slumped 97%.

According to an exchange filing, Evergrande informed on Wednesday, that the company has no further development on the sale of its property management arm worth $2.6 billion and might not be able to pay its debt obligiations.

Evergrande earlier today resumed trading on the Hang Seng Index after trading being halted for three weeks.

In a separate development China’s banking regulator dismissed concerns on deepening crisis of Evergrande to have any impact on the Chinese real estate sector. The regulator commented that the government will not leverage the real estate sector as short-term tool for economic stimulus measure.

He further added Evergrande will not affect the sentiment of the Chinese firms supported by strong economic stability and Evergrande is just an individual case.

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