Evergrande – Stock Trading Suspended – Economy

Trading in shares of the highly indebted Chinese real estate giant Evergrande and its property management company on the Hong Kong Stock Exchange was suspended on Monday. The background to this is speculation about the entry of another large Chinese group into the real estate management company Evergrande Property Services. Such a participation could alleviate Evergrande’s liquidity crisis in the short term and be the first step towards the necessary restructuring of the group. Like the Chinese online news service Cailian with reference to informed circles reported, the real estate company Hopson Development Holdings wants to take over a 51 percent majority in the building management arm. Evergrande is considered the world’s most highly indebted real estate company. It has to raise money to pay banks, suppliers and bondholders. In addition, Evergrande owes several billion dollars to private investors, including many employees.