Shares of Chinese real estate developer Evergrande have been suspended, according to the Hong Kong exchange. This comes as the chairman of the embattled company is reportedly placed under surveillance. Evergrande’s shares last closed at 32 Hong Kong cents on Wednesday. This is not the first time trading has been suspended, as it was also halted in March last year, only resuming after a 17-month hiatus.
Evergrande has recently delayed a debt restructuring meeting with its creditors, citing disappointing sales and the need to reassess the terms of the proposed restructuring. The company is facing challenges due to an investigation into its subsidiary, Hengda Real Estate, and is unable to issue new notes under its debt restructuring plan. These developments highlight the deepening financial woes of Evergrande, which has been struggling with a huge debt burden and declining property sales.
The suspension of Evergrande’s shares and the chairman’s reported surveillance further underline the company’s troubled situation. As the debt restructuring process faces delays and uncertainties, investors and creditors are growing increasingly concerned about the company’s ability to repay its debts. These developments could have broader implications for the Chinese real estate market and the country’s financial system as a whole. The future of Evergrande remains uncertain, and market participants will closely monitor further updates on the company’s financial health.