Shares of property developer China Evergrande Group, which is on the brink of default with around $300 billion in debt, have been suspended from trading until the release of “inside information.”
This was announced by the developer on Monday with no further explanation.
Evergrande currently holds the title of the world’s most indebted developer, having recently missed several deadlines on around $20 billion of international bonds. The company was already declared in default by two ratings firms last month.
Evergrande set up a risk management group in December and demanded help from China’s Guangdong province authorities, while pledging to actively engage with its creditors to resolve the debt crisis.
In the most recent blow, according to a Reuters report citing Chinese media, local authorities in the resort island of Hainan last week gave Evergrande 10 days to demolish its 39 residential buildings, due to illegal construction. Property experts say the development might further shrink homebuyer confidence in the company.
Many Evergrande projects were halted after the developer failed to pay suppliers and contractors, but last week, the company announced that construction had resumed at 91.7% of the sites.
Evergrande shares plunged 89% in 2021, closing at around $0.2 on Friday.
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