Property giant China Evergrande Group bled by as much as 14% on Thursday, as trading of its shares resumed after a two-week suspension.
- A number of stockholders dumped their holdings after a major deal to sell 50.1% of its property services arm to its rival Hopson Development for $2.6 billion failed to push through.
- Trading of the company’s shares has been suspended for two weeks, as the two parties pushed for the transaction but failed to push through. The company owes over $300 billion.
- In a filing late Wednesday, the property developer said there is no guarantee that it will be able to meet its financial obligations, citing difficulties, challenges, and uncertainties in improving liquidity.
- Analysts believe the company is now on the brink of default, which could impact other developers, suppliers and contractors, and the banks and financial institutions.
The potential fallout from the possible default is spurring concerns of a shakeup in the global economy.
3333 closed down 12.54%.
Source: Markets Insider