China’s Evergrande plunges as much as 14% after $2.6 billion sale falls through, as trading resumes in Hong Kong

China’s Evergrande plunges as much as 14% after $2.6 billion sale falls through, as trading resumes in Hong Kong

Shares in embattled Chinese property developer Evergrande plunged as much as 14% on the Hong Kong stock exchange on Thursday as trading resumed after a lengthy suspension. Investors dumped the stock after a major deal to sell 50.1% of Evergrande's property services arm to rival company Hopson Development . The deal would have been worth $2.6 billion. Evergrande - one of China's biggest property developers and among the most indebted companies in the world - also said home sales had plunged dramatically in late Wednesday, which further spooked investors. The company said it's made next to no progress on selling its assets, adding: "In view of the difficulties, challenges and uncertainties in improving its liquidity, there is no guarantee that the Group will be able to meet its financial obligations under the relevant financing documents and other contracts." Evergrande shares finished 12.54% lower, standing at 2.58 Hong Kong dollars ($0.33) each. The company's stock price has plunged more than 85% over the last year. The broader index fell 0.47%, while China's eked out a 0.36% gain. Trading in the company for a fortnight, as Evergrande and Hopson tried to thrash out a deal. Evergrande owes more than $300 billion and