Evergrande, a prominent Chinese real estate firm listed on the Hong Kong stock exchange, saw its share prices plummet by 25% on Monday as it announced a postponement of a crucial debt restructuring meeting slated for the day.
This downturn in Evergrande’s shares triggered a broader sell-off within the Hong Kong stock market, particularly affecting major Chinese property stocks. The Hang Seng Mainland Properties index also suffered a decline of just over 4%, reflecting the sector’s distress. Country Garden, Logan Group, and R&F Properties, significant players in the property market, experienced notable drops of 7.69%, 7.95%, and 6.62%, respectively.
Evergrande’s shares hit a low of 41 Hong Kong cents on Monday, marking a significant 87% plunge since trade resumed on August 28. The company’s stock has now been relegated to penny stock status, and trading had been suspended in March last year.
In a recent filing with the Hong Kong stock exchange, Evergrande revealed that the company’s sales have not met expectations since its March debt restructuring announcement. Consequently, the company deems it necessary to re-evaluate the proposed restructuring terms to align with its current circumstances and meet the demands of creditors.
Evergrande, a troubled Chinese real estate giant listed on the Hong Kong stock exchange, faced a drastic 25% tumble in its share value on Monday. This decline followed the company’s announcement of a delay in a crucial debt restructuring meeting scheduled for the day.
In the wake of Evergrande’s struggle, the Hong Kong stock market witnessed a broader sell-off in major Chinese property stocks. The Hang Seng Mainland Properties index dropped slightly over 4%, echoing the distress within the sector. Notable property companies like Country Garden, Logan Group, and R&F Properties also experienced significant drops of 7.69%, 7.95%, and 6.62%, respectively.
Evergrande’s shares hit a low of 41 Hong Kong cents on Monday, marking a staggering 87% plunge since trade resumed on August 28. The company had been relegated to penny stock status, and trading was suspended in March of the previous year.
In a recent disclosure to the Hong Kong stock exchange, Evergrande cited unmet sales expectations since its March debt restructuring announcement. Consequently, the company expressed the need to re-evaluate the proposed restructuring terms to align with its current circumstances and address creditors’ demands.