Evergrande shares fell as much as 87 per cent on Monday after trading in the Chinese property developer’s stock resumed for the first time in almost a year and a half and the company delayed crucial restructuring meetings with creditors.
The world’s most indebted developer over the weekend disclosed first-half losses of Rmb33bn ($4.5bn) in order to partially fulfil Hong Kong stock exchange requirements to lift a 17-month trading suspension. According to exchange rules, a company whose shares have been suspended for 18 months faces possible delisting.
Evergrande, which is entangled in more than 2,000 lawsuits involving about Rmb535bn, delayed for another month meetings with international creditors in Hong Kong, which were expected to lead to a vote on a restructuring plan this week.