business news

Shares of Evergrande rally again after it resumes trading in Hong Kong

Shares of Evergrande rally again after it resumes trading in Hong Kong
Shares of Evergrande rally again after it resumes trading in Hong Kong

Evergrande, the debt-embattled real estate company based in China, reportedly saw a rise in its shares Tuesday after the firm resumed trading in Hong Kong.

On Monday, this week, the debt-ridden company's shares were suspended from trading, awaiting the disclosure of certain inside information.

Evergrande's stock soared as high as 10% before falling to close 1.3% higher. According to the business, sales for 2021 fell 39% from the previous year to $69.5 billion (£51.6 billion).

Evergrande also revealed that it has been granted permission to tear down 39 buildings on Hainan Island.

The properties impacted by the demolition are located at the company's Ocean Flower Island project. According to the firm, and the deal does not impact other property plots in the project.

Evergrande stated in a filing to the Hong Kong Stock Exchange that in line with the guidelines of the decision letter, the firm will actively interact with the authorities and handle the situation effectively.

Concerns regarding the corporation's liquidity situation were also acknowledged in the official statement. The letter included that with respect to the firm's existing financial condition, the business will continue to effectively maintain a frequent contact with creditors, protect the legitimate rights and interests of all parties, as well as seek to resolve risks.

Evergrande owed over $300 billion in debt and is trying to settle the payment of creditors and suppliers by selling assets and shares.

The business missed certain interest payments on its overseas notes last week.

Rating agencies deemed its $19 billion in international bonds in default after it skipped a payment deadline last month.

Plans to refund investors in the firm's financial products have also been scaled back.

Evergrande's stock has lost about 90% of its value over the last year, as investors fear the company is on the verge of imploding under the burden of its debts.

Source credit: https://www.bbc.co.uk/news/business-59864403

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