China Evergrande seeks to resume trading amid probe
Also Read:Evergrande's billionaire chairman Hui Ka Yan is accused of crimes; stocks remain suspended: What we know so far Chinese authorities are investigating whether Hui attempted to transfer assets offshore while the company was struggling to complete unfinished projects, the Wall Street Journal reported on Monday, citing unidentified people with knowledge of the matter. Evergrande sits at the center of a years-long property crisis that has hurt the Chinese economy and hammered confidence in the housing market.
The company faces an Oct. 30 hearing at a Hong Kong court on a winding-up petition, which could potentially force it into liquidation.
Its shares only resumed trading in August after a 17-month halt — dropping 87% upon their return — as the indebted developer unveiled more losses and delayed meetings with creditors. Evergrande’s shares “should react negatively to the news as the chairman issue will continue to be an overhang," said Willer Chen, senior research analyst at Forsyth Barr Asia Ltd.
“At this stage it’s hard to predict what the outcome will be. It’s a messy situation now." Also Read: China Evergrande’s offshore creditors to join winding-up petition if it fails to submit new debt revamp plan: Report “The board is of the view that the operations of the company are normal," according to a separate filing by its Property Services unit.
That language wasn’t included in the China Evergrande Group filing, which advised holders and investors to exercise caution when considering the stock. If the requests are granted, the shares would resume trading on the Hong Kong bourse on Tuesday."Exciting news! Mint is now on WhatsApp Channels
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