Evergrande halts share trading in Hong Kong

Evergrande halts share trading in Hong Kong

HONG KONG: Embattled property giant China Evergrande suspended trading in its shares in Hong Kong yesterday pending an announcement on a “major transaction”, as the firm struggles in a sea of debt and faces a default. The halt came as reports said Hong Kong real estate firm Hopson Development Holdings planned to buy a 51 percent stake in Evergrande’s property services arm as the troubled giant tries to offload assets to meet its obligations.

“At the request of the Company, trading in the shares of the Company was halted at 9:00 a.m. on 4 October 2021 pending the release by the Company of an announcement containing inside information about a major transaction,” Evergrande said in a statement to the Hong Kong stock exchange. Trading in Hopson was also suspended “pending the release of announcement(s) in relation to a major transaction”, according to a company statement to the exchange. Bloomberg Intelligence analyst Patrick Wong said the suspension may be related to a major asset disposal or capital restructuring.

Evergrande Property Services Group was also suspended but the firm’s electric vehicle company, which last week scrapped a proposed Shanghai listing, continued to trade and rose nearly 30 percent. Hong Kong’s Hang Seng Index lost