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Evergrande’s setbacks continue: after suspending its listing at the beginning of October, the Chinese real estate giant turned on the Hong Kong stock exchange on Thursday and saw its share fall just over 10%. The fears of bankruptcy of this promoter resurfaced.
The fall in the stock shows that investor concerns about Evergrande have not dissipated. The real estate group was indeed unable to sell part of the capital of one of its subsidiaries, the transaction was estimated at 2.2 billion euros. A large sum that Evergrande could have used to pay its deadlines. Both the company and the Chinese authorities, however, are trying to reassure investors.
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A worrying silence of Chinese power
On Wednesday 20, the property developer said it would continue to implement measures to alleviate its cash flow problems. A statement that follows that of the Chinese Central Bank. The latter asserts that the risk of contagion to the Chinese financial system is ” manageable ».
What also makes the markets nervous is the lack of information from Beijing. The Chinese power has still not said anything about what it intends to do with this real estate giant, weighed down by a colossal debt of 260 billion euros.
At the beginning of October, the Chinese giant had to suspend financial operations on the Hong Kong Stock Exchange. The stock has fallen by around 80% since the start of the year.
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