The Evergrande saga continues. On Monday trading for Evergrande stock was halted in Hong Kong.
We’ve reported on the Hong Kong behemoth Evergrande that has been going under for a month. Today, despite numerous attempts to revive the company, the end appears near.
On September 9, 2021, we first reported on the pending Evergrande collapse and what it will mean to the China economy.
This company is a massive entity with reportedly the largest amount of debt of any company in the world. The problem is the company cannot pay its debt.
NBC is reporting this morning:
Shares in troubled real estate developer China Evergrande Group and its property management unit Evergrande Property Services were suspended from trading in Hong Kong on Monday as investors awaited the next steps in the saga of its debt crisis.
Cailian, a Chinese online news service affiliated with the state-run newspaper Securities Times, said another developer, Hopson Development Holdings, was planning to acquire a majority share in Evergrande Property Services Group.
Hopson suspended trading of its shares in Hong Kong on Monday. The suspension was “pending the release of announcement(s) in relation to a major transaction of the company under which the company agreed to acquire the shares of a company . . . listed on the stock exchange,” it said in a filing.
The Wall Street Journal warns, however:
Evergrande’s potential deal to sell its profitable property management unit may buy it a little breathing space for now. How much oxygen will ultimately be left for investors remains highly uncertain.