Business World

Chinese real estate giant Evergrande suspends trade in its shares on Hong Kong Stock Exchange

Crisis-hit Chinese real estate giant Evergrande suspended trade in its shares in Hong Kong as investors await news on its restructuring plan.

The statement to the stock exchange did not give a reason for the trading halt.

Evergrande has more than $300 billion of debts and is scrambling to raise cash by selling assets and shares to repay suppliers and creditors.

Last week, the company dialed back plans to repay investors in its wealth management products.

Evergrande said on Friday that each investor in its wealth management product could expect to receive $1,257 each month as principal payment for three months irrespective of when the investment matures.

The company had earlier not mentioned any amount and had agreed to repay 10% of the investment by the end of the month when the product matures.

Evergrande said in a statement posted on the wealth unit’s website that the situation was not “ideal” and that it would “actively raise funds”, and update the repayment plan in late March, without giving further details.

The announcement was seen as highlighting the deepening cash squeeze at the struggling property developer.

Last week, Evergrande did not make some interest payments on its offshore bonds.

The company’s $19 billion in international bonds were deemed to be in default by rating agencies after it missed a payment deadline last month.