Evergrande's shares plummet over 80% after 17-month trading halt in Hong Kong

Posted on August 30, 2023   |  

Evergrande saw its Hong Kong shares undergo a sharp decline of over 80% as trading resumed following a 17-month suspension.

This significant drop caused shares to plunge from a valuation above HK$30 to just 39 Hong Kong cents.

The resumption of trading came after Evergrande fulfilled prerequisites by releasing its financial results and adhering to listing regulations.

The Hong Kong Stock Exchange suspended trading in the company's shares in 2022 due to Evergrande's failure to publish its financial results for the year 2021.

Recently, Evergrande disclosed combined net losses, surpassing $113 billion for the years 2021 and 2022. The company now grapples with liabilities exceeding $300 billion amid an ongoing nationwide property crisis.

Amid a highly unstable market situation, Evergrande is presently engaged in the restructuring of its offshore debts. 

It proposed a plan to creditors, offering them the opportunity to convert their debt into new notes issued by the company and equities in two of its subsidiaries