China Evergrande records $4.5 billion loss in first half of the year
Hong Kong Stock Exchange on Sunday. This loss compounds the cumulative losses of over 582 billion yuan incurred over the past two years. These losses mark the company's initial two complete annual financial downturns since it was listed in 2009.
The company has submitted a request to recommence trading in Hong Kong starting at 9 am on Monday. This move follows the company's recent statement that its enhanced internal control system and procedures fulfil its responsibilities according to Hong Kong listing regulations. Also Read: China’s economic troubles mark the end of its geopolitical ascent The company's stocks were last traded on March 18, 2022, and since then, its market capitalization has dwindled by more than 95% from its highest point in 2017.
The release of the first-half financial outcomes coincided with the commencement of meetings with creditors, slated to commence on Monday. These results highlight Evergrande's challenges in the midst of the housing turmoil that has significantly impacted China's second-largest economy in the preceding two years. As China took measures to curtail risks and enhance housing affordability by clamping down on the surging real estate sector, numerous developers have been negatively affected.
Evergrande's primary counterpart, Country Garden Holdings Co., is teetering on the brink of default and is anticipated to similarly report a loss for the initial six months of the year. Also Read: India is important to reduce the US' dependency on China: Vivek Ramaswamy As per the filing on Sunday, Evergrande's cumulative net loss for the period totaled 39.3 billion yuan. The company also disclosed its combined liabilities, which reached 2.39 trillion yuan by the end of June.
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