Shares of Evergrande, a troubled Chinese real estate developer, have been suspended on the Hong Kong exchange. This comes as the chairman of Evergrande is reportedly under surveillance by authorities. The company’s shares were last traded at 32 Hong Kong cents and this is not the first time trading has been suspended for Evergrande. The suspension occurred in March of last year and only resumed in August of this year after a 17-month hiatus.
Earlier this month, Evergrande postponed a debt restructuring meeting with creditors, citing lower-than-expected sales. The company stated that it needed to reassess the terms of the proposed restructuring to align with its current situation and meet the demands of creditors. Evergrande also faced obstacles in issuing new notes due to an investigation into its subsidiary, Hengda Real Estate, which is being probed for suspected violation of information disclosure. These developments come on the heels of arrests made at Evergrande’s wealth management unit and the company’s application for Chapter 15 bankruptcy protection in the US.
The uncertainty surrounding Evergrande’s financial situation and ongoing investigations has led to the suspension of its shares. As the company faces mounting debt and challenges with restructuring, investors are left in limbo. The future of Evergrande remains uncertain, and stakeholders are closely monitoring any updates or developments that may impact the company’s financial health. This situation serves as a reminder of the risks associated with investing in the real estate sector and the importance of due diligence in evaluating companies in volatile industries.