In the latest development, debt-laden developer China Evergrande’s shares have been suspended from trading in Hong Kong just weeks after it was declared to have defaulted.
China Evergrande's shares have been suspended from trading on the Hong Kong stock exchange with no reason given weeks after ratings agency Fitch declared that it had defaulted after failing to meet a payment deadline.
Trading of structured products related to the developer will be halted.
More Missed Payments
Even after the declared default in early December, Evergrande has continued to miss payments on international bonds totaling $19 billion.
Just last week, it reportedly missed the deadline to pay another $255 million for coupon on its June 2023 and 2025 notes, triggering another 30-day grace period.
Separately, Chinese developer Cifi Holdings is reportedly offering to buy Evergrande’s outstanding 5.5 percent bond due in 2022 at $1,000.5 for each $1,000 in principal amount plus accrued and unpaid interest.
Construction Commitments
Meanwhile, Evergrande is continuing its efforts to make good on commitments to build homes domestically.
Last week, the firm delivered an additional 1,419 apartments as part of a push to finish 39,000 homes by the end of December.
It is estimated to have another 1 million unfinished homes to build.
