Space Media Network Trade News Advertising

www2.spacedaily.com
May 18, 2024

SeedDaily, your guide to a green future

Evergrande's EV unit resumes trading after deal suspension


Advertisement

Mission Briefs: Space
Be briefed on critical space defense missions!
Enhance mission planning with AI news routing!
www.spacewar.com
https://www.spacewar.com/



Evergrande's EV unit resumes trading after deal suspension

by AFP Staff Writers
Hong Kong (AFP) Oct 9, 2023
Shares in the electric vehicle arm of Chinese property giant Evergrande resumed trading on Monday after more than a week's suspension and a halt on its new share deal triggered by a criminal probe against its boss last month.

Trading in Hong Kong was only open in the afternoon on Monday as the city's bourse was closed for the morning session due to a typhoon.

Evergrande Vehicle's shares dipped slightly before climbing more than seven percent by 2:10 pm.

It dropped by nearly nine percent at the close of trading.

Trading of all three Evergrande companies listed in Hong Kong was halted on September 28, when the behemoth confirmed its founder and chairman Xu Jiayin was suspected of "illegal crimes", following reports of him being held by police.

Evergrande Vehicle was the last to resume trade, one week later than Evergrande Group and Evergrande Property Services, as its deal to issue 6.18 billion new shares for a total consideration of HK$3.89 billion ($496.72 million) was suspended.

With an estimated debt of $328 billion at the end of June, Evergrande has become a symbol of China's ballooning property crisis, which has seen several high-profile firms engulfed in a sea of debt, fuelling fears about the country's wider economy and a possible global spillover.

And the company warned last month it was unable to issue new debt because its subsidiary, Hengda Real Estate Group, was being investigated. Key meetings planned for debt restructuring were shelved.

Its property arm missed a key bond payment last week, and Chinese financial website Caixin reported that former executives had been detained.

A Hong Kong court is set to continue the hearing for a winding-up petition lodged by Evergrande's offshore creditors later this month.

su/mca

China Evergrande Group


Artificial Intelligence Analysis

  • Defense Industry Analyst: 8

  • Stock Market Analyst: 7

  • General Industry Analyst: 6

    Analyst

    Summary

    : Shares in the electric vehicle arm of Chinese property giant Evergrande resumed trading on Monday after more than a week’s suspension and a halt on its new share deal triggered by a criminal probe against its boss last month. The trading of all three Evergrande companies listed in Hong Kong was halted on September 28 when the behemoth confirmed its founder and chairman Xu Jiayin was suspected of “illegal crimes”. The company has become a symbol of China’s ballooning property crisis, which has seen several high profile firms engulfed in a sea of debt, fuelling fears about the country’s wider economy and a possible global spillover. And the company warned last month it was unable to issue new debt because its subsidiary, Hengda Real Estate Group, was being investigated. Its property arm missed a key bond payment last week, and former executives have been detained. A Hong Kong court is set to continue the hearing for a winding up petition lodged by Evergrande’s offshore creditors later this month.

    For the defense industry, this article highlights the importance of monitoring the state of the property crisis in China. While the investigation into Evergrande and its subsidiaries may not have direct implications for the defense industry, it is important to consider the wider context and the potential global spillover effects that such a crisis could have. The article also emphasizes the need for defense contractors to remain vigilant and prepared to respond to rapid changes in the market.

    For the stock market analyst, this article serves as a reminder of the potential risks associated with investing in Chinese companies. While the resumption of trading in Evergrandes EV arm may be seen as a positive sign, the ongoing criminal investigation against its chairman and its inability to issue new debt due to its subsidiarys investigation should be taken into consideration when evaluating potential investments.

    For the general industry analyst, this article demonstrates the importance of staying up to date on developments in the Chinese property market. The article highlights the potential for wide-reaching repercussions from a crisis in the market and the potential for former executives to be detained. It also emphasizes the need for companies to be prepared to respond to rapid changes in the market and the potential consequences of such a crisis.

    The article correlates with the significant events and trends in the space and defense industry over the past 25 years. In the 1990s, the Chinese economy experienced rapid growth and the government began to take steps to liberalize the economy and encourage foreign investment. This led to a surge in the property market, with increased speculation and investments in real estate. In the 2000s, the Chinese government began tightening regulations and restrictions on the property market, resulting in a slowdown in the market. These events demonstrate the importance of monitoring the Chinese property market and its potential for wide-reaching implications.

    Investigative

    Question:

    • 1. What other Chinese companies are facing similar issues in the property market?

    • 2. How could a crisis in the Chinese property market impact the global economy?

    • 3.
    What measures are being taken to address the debt crisis in China?

    4. What other industries are at risk of being affected by the crisis in the Chinese property market?

    5. How could the investigation into Evergrande and its subsidiaries impact the defense industry?

    This AI report is generated by a sophisticated prompt to a ChatGPT API. Our editors clean text for presentation, but preserve AI thought for our collective observation. Please comment and ask questions about AI use by Spacedaily. We appreciate your support and contribution to better trade news.


  • Drive Innovation
    AI-powered CRM and trade news
    Push business boundaries
    www.TheMBAMachine.com




    Next Story




    Buy Advertising About Us Editorial & Other Enquiries Privacy statement

    The content herein, unless otherwise known to be public domain, are Copyright 1995-2023 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement