China Evergrande shares halted, set to release 'inside information'
China Evergrande Group shares were suspended from trading yesterday pending the release of "inside information," the embattled property developer said without elaborating.
Evergrande, the world's most indebted developer, is struggling to repay more than US$300 billion in liabilities, including nearly US$20 billion of international market bonds that were deemed to be in cross-default by ratings firms last month after it missed payments.
The property developer missed new coupon payments worth US$255 million due last Tuesday, though both have a 30-day grace period.
The firm has set up a risk management committee with members from state companies, and said it would actively engage with its creditors.
Local media reported over the weekend a city government in the Chinese resort island of Hainan had ordered Evergrande last Thursday to demolish its 39 residential buildings within 10 days, due to illegal construction.
The buildings stretched over 435,000 square meters, the reports added, citing an official notice to Evergrande's unit in Hainan.
Evergrande did not respond to request for comment on the Hainan development.
On Friday, Evergrande dialed back plans to repay investors in its wealth management products, saying each investor in its wealth management product could expect to receive 8,000 yuan (US$1,257) per month as principal payment for three months irrespective of when the investment matures. The move highlights the deepening liquidity squeeze at the property developer.
Evergrande said last week 91.7 percent of its national projects have resumed construction after three months. Many projects were halted after the developer failed to pay its suppliers and contractors. Evergrande stock shed 89 percent last year, closing at HK$1.59 on Friday.