Evergrande shares fall after chair cuts stake; Fantasia suspends trading

30-Nov-2021 Intellasia | Reuters | 5:02 AM Print This Post

Shares in China Evergrande Group (3333.HK) fell as much as 4.8 percent on Monday morning, after its chair trimmed his stake in the cash-strapped property developer to raise about $344 million.

The group’s electric vehicle unit, China Evergrande New Energy Vehicle Group Ltd (0708.HK), also dropped more than 5 percent after it said the company was still exploring ways to pump capital into the unit with different investors.

Evergrande has been scrambling to raise capital as it grapples with more than $300 billion in liabilities and Chinese authorities have told its chair, Hui Ka Yan, to use some of his personal wealth to help pay bondholders, sources have said.

Evergrande failed to pay coupons totalling $82.5 million due on November 6 and investors are on tenterhooks to see if it can meet its obligations before a 30-day grace period ends on December 6.

The developer disclosed late on Friday that Hui had sold 1.2 billion shares in the company at an average price of HK$2.23 each, lowering his stake in the Shenzhen-based real estate developer to 67.9 percent from 77%.

Once China’s top-selling developer, Evergrand’e troubles have hit the broader Chinese property sector with a string of debt defaults and credit rating downgrades of its peers in the last couple of months.

Fantasia Holdings (1777.HK) suspended trading in company shares on Monday pending release of information. On Thursday, the developer said a winding-up petition was filed against a unit related to an outstanding loan.



Category: China

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