China’s Evergrande went public after 17 months, losing 80 percent of its value

China’s Evergrande, whose shares were suspended on the Hong Kong stock exchange after experiencing a major liquidity and debt problem, returned to trading after a 17-month hiatus, while its shares fell 87 percent, causing the company’s value fell by approximately $2.4 billion.

In the Chinese real estate sector, many contracting and construction companies have been unable to pay their debts by the end of 2021. Evergrande is among the largest companies to default.

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A Hong Kong court is expected next month to decide whether to approve Evergrande’s plan to restructure its nearly $32 billion offshore debt.

The company’s shares, traded in Hong Kong, fell to HK$0.22, while the company’s market value fell from $2.78 billion at its last trading to $369.73 million.

PROCESSING IS CLOSED FOR 17 MONTHS

The company’s shares have not been traded since March 21, 2022. Other units of the company, Evergrande New Energy Vehicle and Evergrande Property Services, began trading last month after 16 months.

The remarketing of the three companies is important to Evergrande Group as the company wants to make payments to its creditors in equity-linked securities as part of its debt restructuring plan. (Reuters)