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Protests outside Evergrande offices as stock trading resumes

The embattled developer’s shares have soared, but protesters in Guangzhou demand their money back

Shares of China Evergrande jumped as stock trading resumed, but investors who were worried their money would be used to keep the firm afloat staged a protest outside the Guangzhou headquarters.

China Evergrande’s shares gained 10% as stock trading resumed on Tuesday after being suspended the day before. Trading was restored after Evergrande announced that a government order to tear down its 39 buildings on Hainan resort island would not affect the rest of its projects there.

The demolition order came over the weekend, forcing the company to halt the sale of shares until the situation was resolved. Evergrande confirmed late Monday that the order only concerned 39 buildings at Hainan’s Ocean Flower Island, but the rest of the approximately 60,000 structures in the resort development, which cost over $13 billion, will not be affected. The reason for the demolition order has not been disclosed.


China Evergrande shares stop trading

Meanwhile, the heavily indebted company’s investors descended on Evergrande’s offices in Guangzhou on Tuesday morning. A crowd of around 100 people, worried that their money would be used to pay off the company’s debts, shouted, “Evergrande, return our money!” Reuters reported.

The developer currently owes more than $300 billion on various bonds, and was recently declared in default by two ratings firms, after missing deadlines on dollar bond payments.

The company’s contracted sales fell 39% in 2021 from the year before, to roughly $69.5 billion.


For more stories on economy & finance visit RT’s business section

https://ift.tt/2i4b67e 04, 2022 at 02:11PM
from RT – Daily news


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