RED OCTOBER
Trading in shares of debt-laden China Evergrande has been suspended by the Hong Kong exchange after the enormous Chinese developer missed a key bond interest payment last week, its second offshore debt obligation in a week.
Evergrande, which has $305bn (£225bn) of debts, said on Monday trade was suspended “pending the release by the company of an announcement containing inside information about a major transaction”, sparking speculation it could sell its profitable property management unit.
Global Times, the Chinese state newspaper, reported that a rival property company, Hopson Development, was planning to buy a 51% stake in Evergrande’s property management unit for more than $5bn.
Evergrande logo outside building
Evergrande: will it collapse and what would happen if it did?
Read more
With liabilities equal to 2% of China’s GDP, Evergrande has triggered concerns its woes could spread through the financial system and reverberate around the world.
https://www.theguardian.com/world/2021/oct/04/shares-in-china-property-giant-evergrande-suspended-after-debt-payments-missed