Business World

Evergrande Group: Shares of troubled real-estate giant plunges 14% as trading resumes

Evergrande shares fell as much as 14% on Thursday in Hong Kong as they resumed trading after a 17-day halt.

The hugely indebted Chinese property giant had stopped its shares from trading ahead of an announcement.

Reports said real estate firm Hopson Development was set to buy a 51% stake in its property services unit.

On Wednesday, Evergrande said the $2.6 billion deal had fallen through as they were unable to agree on the deals terms.

The crisis at Evergrande has triggered fears that its potential collapse could send shockwaves through global markets.

Investors have concerns about its more than $300 billion of debt. The company's total liabilities are equal to around 2% of China's gross domestic product.

Evergrande's chairman and founder Hui Ka Yan says its plan is to try to secure extensions for its debts and "other alternative arrangements" with its creditors.

But, he added, "there is no guarantee that the group will be able to meet its financial obligations".

In recent weeks, the indebted property giant has reportedly missed interest payments to overseas investors twice.