China Evergrande Shares Fall After Withdrawing From Subsidiaries By Investing.com

© Reuters

by Gina Lee

Investing.com – Stocks of China Companies Evergrande New Energy Vehicle Group Ltd. fell on Monday. After the news on Saturday came out that The company will abandon plans to issue Chinese yuan shares. In Shanghai’s science and technology innovation section

The electric vehicle sector of China Evergrande Group (HK:) also warned of an uncertain future. Unless you get cash quickly.

Hong Kong shares of China Evergrande New Energy Vehicle fell 10.31 percent to HK$2 ($0.26) by 12:39 AM ET (4:39 AM GMT), after falling as much as 26 percent and reaching HK$1.66. In the previous session, China Evergrande shares were flat at HK$2.36.

The warning issued after Friday’s close is the latest sign that the property developer’s liquidity crisis is spreading to other businesses.

However, concerns that the collapse of China Evergrande could drive global economic damage have diminished for some investors.

“I think the market is balanced. And the shock of fear is over,” IG Markets analyst Kyle Rodda told Reuters.

“The market had predicted to some extent that One company will fall But it will not pose a risk to China’s financial system, so the damage will not spread to the global market.”

China Evergrande missed dollar bond payments earlier in the week. and received a 30-day grace period. The company is due to pay $47.5 million in bond interest on a 9.5% dollar bond in March 2024 on Sept. 29.

Evergrande currently has about $3.5 billion in debt and is struggling to raise funds to pay off. If the company goes bankrupt economic impact damage to the market or assistance from the Chinese government all possible

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