(Bloomberg) — Embattled Chinese real estate developer China Evergrande Group along with its other units suspended trading in Hong Kong Monday morning, according to exchange filings.
Most Read from Bloomberg
Shares of Evergrande Property Services Group and China Evergrande New Energy Vehicle Group were also halted without giving any reasons.
The pause comes after Shenzhen-based Evergrande said in January that it aimed to present a preliminary restructuring proposal in the next six months. The firm has been at the center of a cash crisis among Chinese property developers following Beijing’s crackdown.
Investors are watching for signs of further asset sales as the group faces pressure from bondholders and offshore creditors in what’s likely to become one of China’s largest restructurings. The company has more than $300 billion in liabilities and is under pressure to pay suppliers and migrant workers and complete millions of unfinished homes.
On Sunday, local media reported that Evergrande’s onshore unit will sell its 30% stake in a Nanjing property company to Avic Trust Co. for an undisclosed sum.
The company’s onshore unit separately said it received bondholders’ approval to delay coupon payments on its four billion yuan note, meaning the delay won’t trigger a default on the bond.
Evergrande Group’s shares have risen 3.8% in Hong Kong this year following a 89% slump in 2021.
Explainer: What’s Next for China Evergrande, Crushed by Debt
(Updates with local media report in fifth paragraph)
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.
