China Evergrande shares halted, ready to release ‘insider information’

Shares of China Evergrande Group were suspended trading on Monday until “insider information” is released, the investor in the conflict said without further explanation.

Evergrande, the world’s most indebted developer, is struggling to repay more than $ 300 billion in liabilities, including nearly $ 20 billion in international market bonds that companies rated last month as defaulting after failing to pay.

The investor missed the payment of new coupons worth 255 million dollars, which fell due last Tuesday, although both have a grace period of 30 days.

The firm has established a risk management commission with many members from state-owned companies and said it will actively cooperate with its creditors.

Local media reported over the weekend that the city government in the Chinese resort of Hainan on December 30 ordered Evergrande to demolish its 39 apartment buildings within 10 days, due to illegal construction.

The buildings covered 435,000 square meters, reports added, citing an official notice to the Evergrande unit in Hainan.

Evergrande did not respond to a request for comment on Hainan’s development.

Evergrande on Friday canceled plans to repay investors in its wealth management products, saying any investor in its wealth management product can expect to receive 8,000 yuan ($ 1,257) a month as principal repayments in three months, regardless that when the investment matures.

The move underscores growing investor liquidity pressure.

“The market is monitoring progress in the sale of assets from Evergrande to repay the debt, but the process will take time,” said Conita Hung, director of investment strategy at Tiger Faith Asset Management.

“And the demolition order in Hainan will hurt the little trust of apartment buyers left in the company.”

Evergrande said last week that 91.7% of his national projects continued to build after three months of effort. Many projects were stopped earlier after the investor did not pay his numerous suppliers and contractors.

Shares of Evergrande fell 89% last year, closing at $ 1.59 on Friday.

Its EV unit, the China Evergrande New Energy Vehicle Group, reversed early losses to 14% growth in early afternoon trading on Monday, while Evergrande Services ’asset management unit also swerved from a deficit and rose 1%.

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