BEIJING (Pakistan Point News / Sputnik - 04th October, 2021) Trading in the shares of China's second largest property developer, Evergrande Group, was suspended on the Hong Kong stock exchange on Monday ahead of a major deal.
"At the request of the Company, trading in the shares of the Company was halted at 9:00 a.m. (01:00 GMT) on 4 October 2021 pending the release by the Company of an announcement containing inside information about a major transaction," the Hong Kong stock exchange said in a statement.
Earlier, it was reported that Evergrande trading was being suspended on Monday morning, but no reasons were given.
Hopson Development Holdings Ltd. reportedly plans to acquire a 51 percent stake in Evergrande Property Services Group Ltd. for more than $5.1 billion.
Evergrande is on the brink of default after years of growth and active borrowing. Declining sales, a high-risk business model, and Beijing's actions to curb the boom in the Chinese housing market brought the company into crisis. At the end of June, Evergrande owed $304 billion. Since the beginning of this year, Evergrande's shares, which are traded in Hong Kong, plunged 82 percent.
