Evergrande shares drop 87% after resuming trading
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More news: Shares in Chinese property developer Evergrande have plummeted up to 87% in Hong Kong and were fetching 33 HK cents, down 80%, at 12:10pm AEST. The company's stock restarted trading on Monday morning after a 17-month freeze.
China Evergrande posts fresh half-year loss
The news: Troubled property developer China Evergrande has posted a fresh half-year loss even as it works on a debt restructuring plan.
The numbers: Evergrande narrowed its net loss for the six months to 30 June to 33 billion yuan ($7.1 billion), from 66 billion yuan a year ago. Revenue rose 44%, but its cash and assets were lower. The company last month reported a combined USD81 billion loss for 2021 and 2022.
The context: Evergrande latest loss is likely to prompt fresh investor worries about its ability to restructure debt. The world’s most indebted real estate developer earlier this month filed for Chapter 15 protection, which shields a company’s US assets while restructuring arrangements are worked out elsewhere. There are growing fears that problems in China's property sector could spread to other parts of the country's economy. A default by Evergrande in 2021 triggered a string of defaults at other builders and left thousands of homes unfinished across China.
The source: Reuters
