New-year-old worries. On the first Monday of the year, the Hong Kong Stock Exchange announced that China Evergrande Group will be suspended from trading today. However, the statement did not specify the reason for the suspension of the shares.
While shareholders and stakeholders follow the company’s debt restructuring plan.
Evergrande had previously defaulted on another interest payment on its debt payment, which was due on Tuesday, December 28.
Evergrande has debts of more than $300 billion. The company raises cash by selling large amounts of its assets and shares, hoping to repay the debt in time.
The real estate sector is a mainstay of the Chinese economy, accounting for almost 30% of China’s total economic output. Therefore, Evergrande’s bankruptcy would have a far-reaching impact on the sector and the economy. This may also pose a risk to the Chinese banking system.