• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

China Evergrande Shares Plunge 12.5%, After $2.6 Billion Asset Sale Falls Through

Oct 21, 2021

China Evergrande Shares Plunge 12.5%, After $2.6 Billion Asset Sale Falls Through

On Thursday, China Evergrande shares plummeted 12.5 percent after an agreement to sell part of the company's properties to Hopson Development Holdings fell through.

Hopson's stock finished approximately 7.6% higher, while Evergrande Property Services' stock dropped 8%.

Evergrande, which is heavily indebted, was in negotiations with Hopson, a smaller rival, earlier this month to sell a portion of its services sector. Hopson, on the other hand, revealed late Wednesday that discussions to buy a 50.1 percent interest in Evergrande Property Services had fallen through. In a second filing, Evergrande acknowledged the deal's cancellation.

According to documents, the purchase would have been valued $2.58 billion in Hong Kong dollars.

Evergrande stock in Hong Kong

With a total of roughly $300 billion in liabilities, Evergrande is China's second-biggest developer by sales and the industry's largest issuer of offshore notes. Concerns over the company's capacity to repay its debt have sparked fears of a spillover into China's real estate sector, which accounts for approximately a quarter of the country's GDP (together with associated businesses).

The three equities resumed trading on Thursday, more than two weeks after they were suspended due to a "significant transaction."

No progress on asset sales

Evergrande is approaching the end of a 30-day grace period for a carefully watched $83 million interest payment to investors in an offshore US dollar-denominated bond when the Hopson transaction falls apart. It will technically default if the developer does not pay by Saturday.

Evergrande stated late Wednesday that "there has been no substantial movement on the sale of assets of the Group" after selling its $1.5 billion interest in Shengjing Bank in late September.

According to Reuters, Chinese state-owned Yuexiu Property abandoned a $1.7 billion plan to acquire Evergrande's Hong Kong headquarters building, citing sources.

Both firms did not reply to a request for comment from CNBC right away.

With the implementation of the "three red lines" guideline for real estate businesses to minimize the ratio of debt to assets, Evergrande's excessive dependence on debt to develop quickly came under increased regulatory scrutiny last year.

According to Natixis, China Evergrande had passed all three red lines in the first half of this year, whereas Hopson and Yuexiu had not crossed any of them.

Subscribe Our Newsletter

Job Openings Are Rising While U.S. Workers Continue to Quit in Droves
Job Openings Are Rising While U.S. Workers Continue to Quit in Droves

According to the Labor Department's Job Openings and Labor Turnover Survey, there were 10.9 million empty jobs in December, up from 10.6 million in November. The rate of job opportunities remained stable at 6.8 percent.

Companies
Credit Suisse’s Risk Gauge Hits All-time High

Alexander

Credit Suisse’s Risk Gauge Hits All-time High

This weekend, social media was awash with debate about whether one of the 30 globally systemically important banks would collapse entirely.

Banks and Finance
Alexander

Forex Broker Marketing Strategies That Work in 2022
Nowadays, we can observe an increasing number of Forex brokerage firms striving to become the best in providing their unique services to traders. As a result, the rivalry to engage traders increases as more brokers become involved in Forex trading.

discover
What is Cryptocurrency Liquidity?

Liquidity Provider

What is Cryptocurrency Liquidity?

Let's find out how to understand the liquidity of cryptocurrency and what are the reasons to deal with a liquidity provider.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Alexander

    Full Bitcoin Price History: From 2009 to 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-11-300x203.png

    Constantine

    Top 5 Most Reliable KYC Technology Providers

    https://liquidity-provider.com/app/uploads/2023/01/cover-10-300x203.png

    Alexander

    The Best Crypto Wallets of 2022: Top 5 Picks

    https://liquidity-provider.com/app/uploads/2023/01/cover-2-300x203.png

    Alexander

    Top 5 Most Reliable Forex Brokers of 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-1-300x203.png

    Constantine

    5 Top-Tier Breakthrough Trading, Crypto and Fintech Industries Software Solutions in 2022

    https://liquidity-provider.com/app/uploads/2023/01/cover-300x203.png

    Constantine

    5 Most Successful FinTech Industry Startups in 2022

    https://liquidity-provider.com/app/uploads/2022/12/cover-300x203.png

    Constantine

    Top 7 Liquidity Providers of 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-3-300x203.png

    Alexander

    Top 5 Crypto Exchanges of 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-1-300x203.png

    Constantine

    Top 5 Most Distinguished White Label Solutions in 2022

    https://liquidity-provider.com/app/uploads/2022/12/liquidity-provider-2-300x203.png

    Constantine

    What is Crypto Leverage Trading And How Does It Work?

    https://liquidity-provider.com/app/uploads/2022/12/oblozhka-5-300x203.png

    Constantine

    Top 5 Most Prospective Tokens in the Metaverse.

    https://liquidity-provider.com/app/uploads/2022/12/cover-7-300x203.png

    Constantine

    How to Mine Bitcoins? – Beginners Guide

    https://liquidity-provider.com/app/uploads/2022/11/cover-5-300x203.png

    Oliver

    Blockchain for Business. Pros & Cons

    https://liquidity-provider.com/app/uploads/2022/11/oblozhka-1-300x203.png

    Constantine

    The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

    https://liquidity-provider.com/app/uploads/2022/11/cover-3-300x203.png

    Alexander

    What is Web 3.0 and Why Does it Matter?

    https://liquidity-provider.com/app/uploads/2022/11/cover-1-300x203.png

    Constantine

    5 Benefits of Accepting Crypto Payments for Your Business

    https://liquidity-provider.com/app/uploads/2022/11/cover-300x203.png

    Constantine

    Hot Wallet vs Cold Wallet: Which Do I Need More for Crypto?

    https://liquidity-provider.com/app/uploads/2022/11/oblozhka-5-300x203.png

    Alexander

    What is Hedging and How Does it Work in Trading? — Ultimate Guide

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-4-300x203.png

    Oliver

    Pre-execution vs Post-execution: What’s the Difference?

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-1-300x203.png

    Constantine

    What is Slippage in Trading? – Definition

    https://liquidity-provider.com/app/uploads/2022/10/shapka-1-1-300x203.png

    Oliver

    How Forex Brokers Make Money? – A-Book vs. B-Book Model

    https://liquidity-provider.com/app/uploads/2022/10/shapka-2-300x203.png

    Oliver

    What is the Ethereum Merge, And How Will it Change Ethereum?

    https://liquidity-provider.com/app/uploads/2022/10/shapka-1-300x203.png

    Alexander

    How to Spot Cryptocurrency Scams

    https://liquidity-provider.com/app/uploads/2022/10/shapka-300x203.png

    Milena

    Exploring the Metaverse: What Does It Mean for the Future of the Internet?

    https://liquidity-provider.com/app/uploads/2022/10/oblozhka-300x203.png
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy