Shares in China Evergrande Group have been suspended from trading in Hong Kong on Monday pending the release of “inside information,” the embattled property developer said without elaborating.
The company, the world’s most endebted property developer, has been struggling under the weight of its’ $300 billion debt load for weeks. At least $20 billion of that debt is owned by investors who are not based in either Hong Kong or China.
The value of the company plummeted by almost 90 per cent last year.
The company has set up a risk management committee to negotiate with its many creditors but indications are that it is running out of time.
Local Chinese media reported over the weekend one city government had ordered it to demolish 39 of the buildings it is currently building, due to illegal construction.
“The demolition order in Hainan will hurt the little homebuyer confidence that remained in the company,” said Conita Hung, investment strategy director at Tiger Faith Asset Management.
More to come.