Evergrande Jumps Even as Its Fate Remains Uncertain

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Evergrande Jumps Even as Its Fate Remains Uncertain
Credit: © Reuters.

By Dhirendra Tripathi

Investing.com – Evergrande stock (HK: 3333 ) closed 7.6% higher in Hong Kong trading Monday as the Chinese central bank repeated its determination to keep market conditions orderly, although the fate of the debt-laden Chinese real estate developer remained uncertain.

The company missed a payment deadline on a dollar bond during the previous week, triggering the start of a 30-day grace period. Interest on its 9.5% March 2024 dollar bond is due Wednesday, however. 

Shares of the beleaguered company are down 83% this year.

Evergrande has liabilities of around $305 billion and is scrambling to raise funds to service them. The parent group's troubles sabotaged a planned share sale by the group's electric car unit on Monday: shares in China Evergrande New Energy Vehicle Group crashed 26% after it warned of an uncertain future unless it got a swift injection of cash.

Shares of another Chinese developer, Sunac China Holdings (HK: 1918 ), closed 8.5% lower in Hong Kong after it sought “special policy support” from authorities in eastern Shaoxing because operations in the city have become difficult.  

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