Evergrande Group, the world’s most heavily indebted Chinese real estate giant, resumed trading on Monday after a 17-month hiatus. In the first hours of trading, the value of shares fell by 80%.
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Although the company is well-known in China, it caught the world’s attention in 2021 and 2022, when its potential bankruptcy prompted experts to ask whether the world is headed for a 2008-style crisis.
After the crisis, the company suspended trading of its shares. For years, it was one of China’s largest property developers by sales. But Evergrande had borrowed heavily to finance its expansion, and in 2021, as problems worsened, it was no longer able to cover its payments.
The company filed for bankruptcy in the US earlier this month.
According to CNN, the company’s financial performance has improved this year, and in the period from January to June, compared to last year, its revenue increased by 44%, reaching $17.6 billion.
The company announced that it had “actively planned the resumption of sales and successfully ‘grabbed’ the short boom in the real estate market that appeared at the beginning of the year.”
However, as reported by the BBC, investors were not convinced and when stock trading resumed, the value on the Hong Kong stock exchange fell by 80%.
In general, during the last three years, “Evergrande” shares have lost 99% of their value.
On Monday around At 13.00, the company’s shares were trading at 0.35 Hong Kong dollars, which is equal to about 0.04 euros. In 2020, the shares were sold for more than 3 euros a piece.
2023-08-28 11:09:15
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