Evergrande stated in a submitting to the Hong Kong Inventory Trade that its buying and selling halt was pending an “announcement containing inside info,” although it didn’t elaborate.
The corporate has about $300 billion in whole liabilities, and analysts have nervous for months about whether or not a collapse might set off a wider disaster in China’s property market, hurting householders and the broader monetary system. The US Federal Reserve warned final yr that bother in Chinese language actual property might harm the worldwide economic system.
The corporate’s inventory was rattled final week after extra debt fee deadlines handed with out indicators that it had met its obligations, although it reportedly has a 30-day grace interval to pay these money owed. (Fitch’s downgrade got here when Evergrande appeared to overlook funds after their grace intervals lapsed.)
Evergrande didn’t instantly reply to a request for remark about its determination to halt shares Monday.
And, there are indicators that Chinese language authorities are taking steps to comprise fallout from the corporate’s downward spiral and information it by means of a restructuring of its debt and enterprise operations.
The Individuals’s Financial institution of China additionally stated it will pump $188 billion into the economic system, apparently to counter the true property hunch, which accounts for almost a 3rd of China’s GDP.
— Laura He contributed to this report.