Evergrande said in a filing to the Hong Kong Stock Exchange that its trading halt was pending an “announcement containing inside information,” though it did not elaborate.
The company has about $300 billion in total liabilities, and analysts have worried for months about whether a collapse could trigger a wider crisis in China’s property market, hurting homeowners and the broader financial system. The US Federal Reserve warned last year that trouble in Chinese real estate could damage the global economy.
The company’s stock was rattled last week after more debt payment deadlines passed without signs that it had met its obligations, though it reportedly has a 30-day grace period to pay those debts. (Fitch’s downgrade came when Evergrande appeared to miss payments after their grace periods lapsed.)
Evergrande did not immediately respond to a request for comment about its decision to halt shares Monday.
And, there are signs that Chinese authorities are taking steps to contain fallout from the company’s downward spiral and guide it through a restructuring of its debt and business operations.
The People’s Bank of China also said it would pump $188 billion into the economy, apparently to counter the real estate slump, which accounts for nearly a third of China’s GDP.
— Laura He contributed to this report.
‘This too shall pass away’ this famous Persian adage seems to be defeating us again and again in the case of COVID-19. Despite every effort