Chinese real estate giant Evergrande has suspended trading in its shares Business

The announcement came at a time when rumors were heard that Hong Kong real estate company Hopson Development Holdings plans to take over 51 percent. Shares in Evergrande Real Estate.

“At the request of the company, trading in its shares has been suspended from October 4, 2021 at 9.00 am. until the company announces an insider on a major transaction, ”Evergrande said in a statement to the Hong Kong Stock Exchange.

Trading in Hopson Development Holdings shares has also been suspended “pending the announcement of a major transaction,” the company’s stock exchange said in a statement.

Patrick Wong, an analyst at Bloomberg Intelligence, said the suspension could be linked to a transfer of high-value assets or a recapitalization.

Trading in shares of Evergrande Property Services Group, a division of the real estate giant, has also been suspended, but the company’s electric vehicle division, which dropped plans to debut on the Shanghai Stock Exchange last week, continued to trade shares that rose more than 15 percent.

Evergrande executives are trying to find their way out of the crisis caused by more than $ 300 billion. The indebtedness of the US dollar is worrying about the impact of the entire Chinese economy and even the crisis on the global economy.

Last week, the company announced it would sell 1.5 billion shares held by one regional bank in China. USD to obtain much-needed capital and be able to pay interest to bondholders.

The company’s officials hired a variety of experts, including financial services firm Houlihan Lokey, who also advised Lehman Brothers during the global financial crisis, in an effort to prevent the giant from collapsing.

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According to the reports, state regulators also sent a team of financial advisors to assess the company’s situation.

Last month, the company agreed to pay interest on the bonds in yuan, but no news was reported on the payment of interest on the two foreign currency bond issues, although they are subject to a 30-day grace period until the company is deemed to have defaulted.

The company is also due to pay interest on another issue of securities in foreign currency on Monday and has only a five-day grace period, so it is feared that it will soon be considered defaulted.

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