2023-08-03 03:44:49
Shares of China’s Evergrande Group, the real estate management arm of Evergrande Group, China’s largest property developer, resumed trading on the Hong Kong market on March 3, temporarily dropping 50%, the biggest drop since listing. Nearly $1.6 billion worth of market capitalization was lost.
Evergrande shares have been suspended since March last year. By finally announcing earnings, the company met regulatory requirements and resumed trading of its shares.
Evergrande announced in June that its net profit for 2022 was 1.42 billion yuan (about 28 billion yen) in the black. In 2021, the final deficit was 316.3 million yuan.
In China Evergrande’s subsidiary, stock trading of China Evergrande New Energy Automobile Group, an electric vehicle (EV) division, resumed on the 28th of last month, and the stock plunged to 68% at one point. Since trading resumed, the company’s stock has lost nearly $2.2 billion in market capitalization.
China Evergrande’s EV division temporarily drops 68% – trading resumes for the first time in over a year
China Evergrande’s debt restructuring proposal, which defaulted on dollar-denominated bonds in December 2021, included Evergrande shares in exchange for offshore bonds. It helps in determining the benefits.
China Evergrande has received court approval to hold a vote in late August on its offshore bond restructuring plan, and is scheduled to meet in Hong Kong on the 23rd and 24th. Trading in China Evergrande shares has been suspended since March last year.
Original title:Evergrande Services Unit Erases $1.6 Billion as Trading Resumes(excerpt)
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