Trading halt sends markets Asian stocks falling amid speculation the debt-laden group will sell off its property management arm
Trading in shares of debt-laden China Evergrande was suspended by the Hong Kong exchange on Monday after the enormous Chinese developer missed a key bond interest payment last week, its second offshore debt obligation in a week.
Evergrande said 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.
With liabilities equal to 2% of China’s GDP, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world.