- China Evergrande Group resumed trading on the Hong Kong exchange after being suspended since March 21, 2022. The company's shares plummeted by as much as 87% upon reopening, dropping to 22 Hong Kong cents from their last traded price of 1.65 Hong Kong dollars per share in March 2022. Evergrande reported a loss of 39.25 billion yuan ($5.38 billion) for the first half of the year, along with total liabilities of 2.39 trillion yuan. The company had previously filed for Chapter 15 bankruptcy protection in the U.S. and is engaged in restructuring efforts.
- The reopening of trading for China Evergrande Group marked a significant drop in share value and highlighted the ongoing financial challenges faced by the company. With substantial losses and extensive liabilities, the company's financial instability has drawn attention not only within China but also internationally. The filing for bankruptcy protection and the struggles to meet financial obligations underscore the complexities and potential ripple effects of such a large-scale financial distress, impacting creditors, investors, and the broader real estate sector.
Why it matters
Earlier this year, in March, the company introduced a multi-billion dollar strategy aimed at reconciling with its global creditors, yet emphasized a requirement for supplementary funding ranging from $36 billion to $44 billion to finalize ongoing real estate ventures. In the recent filing on Sunday, Evergrande conveyed that it had already secured fresh funding for specific projects and intends to persist in its pursuit of added capital.
