Evergrande shares rise despite mounting uncertainty over debt revamp plan
2023.09.26 22:14
© Reuters. FILE PHOTO: China Evergrande Group’s logo is seen on its headquarters in Shenzhen, Guangdong province, China, Sept. 26, 2021. REUTERS/Aly Song/File Photo
HONG KONG (Reuters) -China Evergrande Group’s shares rose nearly 4% in early trading on Wednesday after their sharp recent declines.
The rise came despite growing uncertainty about the cash-strapped developer after Reuters reported that some of its offshore creditors were planning to join a liquidation court petition filed against the company if it does not submit a new debt revamp plan by end of next month.
Evergrande’s Hong Kong-listed shares opened down 3.8% at HK$0.38, but reversed losses and were up nearly 4% in early trade.
The stock is still off nearly 25% since Monday after Evergrande said a day earlier it could not issue new bonds as part of its debt restructuring plans because of a regulatory investigation into its main Chinese unit.
The unit, Hengda Real Estate, then said on Monday it had failed to pay the principal and interest for a 4 billion yuan ($547 million) bond due by Sept. 25.
