China’s Evergrande resumed today trading on the Hong Kong Stock Exchange today after a 17-month suspension.
The company’s shares fell 87 percent within the first few minutes of today’s trading session, causing the company’s value to fall by about $2.4 billion.
Chinese real estate giant has filed for bankruptcy protection in the US ten days ago.
China Evergrande Group filed for ‘Chapter 15 bankruptcy protection’ in a New York court. ‘Chapter 15’ protects the assets of a foreign company attempting to restructure its debts in the US.
A Hong Kong court decision on whether to approve Evergrande’s plan to restructure about $32 billion of offshore debt is expected to be announced next month.
The company’s shares traded in Hong Kong fell as low as 0.22 Hong Kong dollars, while the company’s market capitalization fell to $369.73 million, down from $2.78 billion the last time it traded.
The company’s shares have not traded since March 21, 2022. The company’s other listed units Evergrande New Energy Vehicle and Evergrande Property Services began trading last month after 16 months.
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