HONG KONG (Reuters) – The troubled Chinese real estate group China Evergrande, whose shares had been suspended since Thursday, ended Tuesday with a jump of 28.13% when its listing on the Hong Kong Stock Exchange resumed.
In volatile trading, Evergrande gained up to 42% during the session, days after the group said its founder, billionaire Hui Ka Yan, was under investigation for unspecified crimes and had been placed under police surveillance.
“The resumption of trading may have fueled speculation about progress in (debt) restructuring,” said Linus Yip, chief strategist at First Shanghai Securities.
The company, which has the world’s highest debt, has lost around three-quarters of its stock market value since August and has been mired in a series of crises since its financial woes became public in 2021.
Reuters reported last month that a major group of creditors planned to join a liquidation petition filed against the property developer if it did not submit a new debt restructuring plan by October.
Evergrande is due to be heard on this subject on October 30.
(Donny Kwok report, written by Anne Marie Roantree, French version Claude Chendjou, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters