2023-08-29 22:32:55
The listing of the ultra-indebted Chinese promoter Evergrande resumed Monday on the Hong Kong Stock Exchange, with a plunge as soon as the opening of the exchanges, following 17 months of suspension for non-publication of its financial results.
The stock plunged nearly 87% during Monday morning trading, with Evergrande’s market value falling to around $590 million by midday. It peaked at over $50 billion in 2017.
Trading resumed at 9 a.m. today (01 a.m. GMT Monday), according to a note posted on the Hong Kong Stock Exchange website.
The company had said in a statement on Friday that it had “completed” its obligations, including the publication of its results, and “complied with recovery guidelines“established by the Stock Exchange.
The listing of the title had been interrupted in March 2022, because the company, in dire straits, had not then published its results for 2021.
The annual results for 2021 and 2022 were finally published last month and it is for this reason that the stock exchange gave the green light to the resumption of trading.
Meetings with creditors
Evergrande on Monday postponed meetings on its offshore debt restructuring just hours before they were scheduled to be held with creditors.
The postponement of regarding a month will allow creditors to “consider, understand and evaluatethe plan, the company said in a stock filing.
Evergrande’s proposed plan offers creditors the choice of swapping their debt for new company-issued securities or shares of two subsidiaries, Evergrande Property Services Group and Evergrande New Energy Vehicle Group.
The meetings will be held between September 25 and 26, which the promoter says is “according to“on the schedule expected by the creditors.
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