A new, very heavy tile fell on it Evergrande, the Chinese real estate giant for months he has been grappling with difficulties that could lead him straight to default.
Evergrande: stop to the 2021 budget
In a notice to the Hong Kong Stock Exchange, the company said it could not comply deadline on the release of the 2021 budgetscheduled for the end of the month. The reason? “Complications with auditing its books,” the company explains. Its two subsidiaries China Evergrande New Energy Vehicle Group and Evergrande Property Services Group also communicated the delay.
The publication of last year's accounts was eagerly awaited by the market. From those numbers, in fact, it would have been possible to better understand what it is the real financial situation of Evergrande, on which – we recall – a debt of over 300 billion dollars weighs like a ton, including about twenty to Western lenders.
“Due to the drastic changes in the company's operating environment since the second half of last year, the auditor added a large number of additional procedures this year,” Evergrande explained. Yet, just over a month ago, it seemed that the worst was over. The real estate giant had in fact announced its intention to complete 600 apartments to deliver them to customers, many of whom had already paid in advance. A news that had heartened investors after months of turbulence related to the failure to pay within the established deadlines of some bonds.
Evergrande stock suspended on the Stock Exchange
The March 21 Evegrande suspended the listing (again). on the Hong Kong Stock Exchange of the shares of Evergrande Property Services Group and China Evergrande New Energy. “Consequently, trading of all structured products related to the company will also be suspended,” reads a notice posted on the Hong Kong Stock Exchange.
