The stock gained more than 10% in early trades before falling back. Evergrande had already experienced a suspension of its listing in October.
The action of the Chinese real estate giant Evergrande took colors Tuesday for its return to the Hong Kong Stock Exchange following a day of suspension, and despite an order to demolish a real estate project.
Evergrande is strangled by an abysmal debt exceeding 300 billion dollars (275 billion francs). He has struggled for several months to honor his interest payments and his apartment deliveries.
Without giving any reasons, the group suspended its listing on the Hong Kong Stock Exchange on Monday. Evergrande finally announced their takeover on Tuesday.
The stock gained more than 10% in early trades before falling back. Evergrande had already experienced a suspension of its listing in October.
The ultra-indebted group also confirmed Tuesday that it had received the order to demolish 39 buildings of a real estate project, called “Ocean Flower Island”, in the island province of Hainan (south).
The decision, taken by authorities on December 30, concerns just one plot of land, according to Evergrande.
The press release does not specify the reason for this demolition. But the Chinese press mentions a building permit obtained illegally.
“The company will actively communicate with the authorities in accordance with (the) decision and resolve the issue appropriately,” the group said.
In default of payment
Evergrande was filed last month in default by several international rating agencies following missing a repayment deadline in November.
He still had to pay a repayment of 250 million dollars on bonds last Wednesday.
The deadline has passed without any sign that the group has repaid the sum. However, he has a 30-day grace period.
In recent years, Evergrande has made a multitude of investments, sometimes risky, in sectors as diverse as tourism, health and electric cars.
In September, buyers and investors rallied in front of headquarters in Shenzhen (south) to express concern over the developer’s difficulties in meeting its obligations.
The company has repeated several times in recent months that it will complete the projects it has started.
The Chinese state has so far taken part in the group’s steering with the creation of a committee whose mission is to “reduce and eliminate future risks”.
