Evergrande Hits Back Again Dragging Down Hang Seng Index
Trading of Evergrande and its property services unit suspended amid news on major restructuring in a desperate move to raise cash
Shares of China Evergrande (3333 HK) and its property service unit Evergrande Property Services (6666 HK) was halted earlier this morning citing no reason for the suspension according to an exchange filing.
Evergrande property services according to an exchange filing agreed to divest controlling stake of the company in a desperate move to raise cash.
The Evergrande saga has continued to wabble global markets amid concerns of dragging down Chinese economy and financial system lead to a global contagion.
Another Chinese developer Hopson Development Holding Ltd. (754 HK) shares were also suspended citing “major transaction” of acquiring shares of another company according to a filling.
Evergrande’s dollar note worth USD 260 million issued by Jumbo Fortune Enterprises guaranteed by Evergrande matures today and a nonpayment would be considered as “default”.
Hang Seng index feels the heat tumbling down by more than 2% as main bourses are closed for holiday and set to reopen on Friday.