![](https://theceopublication.com/wp-content/uploads/2024/09/Foster-USA-Wins-Winston-Salem-Council-Approval-for-Incentives.png)
October 02, 2023:On Thursday, Hong Kong’s stock exchange has announced the suspension of trading in the shares of China Evergrande Group. The troubled Chinese real estate developer’s chairman has reportedly been under surveillance. The most recent closing price of Evergrande shares was 32 Hong Kong cents, recorded on Wednesday.
This isn’t the first instance of Evergrande’s shares being suspended; a previous suspension occurred in March of the previous year and only resumed trading on August 28, following a 17-month hiatus.
Late on Wednesday, Evergrande disclosed a loss attributable to shareholders amounting to 33 billion yuan ($4.15 billion) for the six months ending in June. The operating loss was reported at 11.72 billion yuan, a decline from 39.36 billion in the first half of 2022.
In July, the company released a combined net loss of $81 billion for 2021 and 2022 in its long-delayed financial report. This significantly contrasted the 8.1 billion yuan net profit recorded in 2020 before the company’s default.
Evergrande recently postponed a debt restructuring meeting with creditors, citing unexpected sales performance since its March debt restructuring announcement.
Consequently, the company deems it necessary to reevaluate the terms of the proposed restructuring to align with the organization’s current circumstances and creditor demands.
Furthermore, Evergrande disclosed that due to an investigation into its subsidiary, Hengda Real Estate, it cannot issue new notes as part of its debt restructuring plan.
The Chinese securities regulator is investigating the Evergrande unit for potential violations of information disclosure.
These developments follow closely after the detention of some staff members from Evergrande’s wealth management unit last week.
Additionally, in August, Evergrande filed for Chapter 15 bankruptcy protection in a U.S. court, enabling a U.S. bankruptcy court to participate in cross-border insolvency cases involving foreign companies undergoing restructuring from creditors.
According to the filing, Tianji Holdings, an affiliate of Evergrande and its subsidiary, Scenery Journey, also sought Chapter 15 protection in a Manhattan bankruptcy court.
© THE CEO PUBLICATION 2021 | All rights reserved. Terms and condition | Privacy and Policy