Evergrande halted as revamp gets closer

China Evergrande (3333) is to announce the restructuring plan soon and will hold a teleconference with investors, REDD reported, while the group and its two affiliated companies suspended trading yesterday, an exchange filing showed.

Shares of Evergrande as well as its property services unit, Evergrande Property Services (6666), and electric vehicle unit, China Evergrande New Energy Vehicle (0708), were suspended from trading, pending an announcement by the company.

Shenzhen-based Evergrande said in January that it aimed to present a preliminary restructuring proposal in the next six months. It has been at the center of a crisis among Chinese property developers following Beijing's crackdown on borrowing.

Evergrande shares traded at HK$1.65 before the suspension. They have gained 3.8 percent this year after plunging 89 percent in 2021.

Evergrande's onshore unit said it received bondholders' approval to delay coupon payments on its yuan-denominated bond, a statement on the Shenzhen stock exchange said late on Sunday.

Meanwhile, Evergrande's onshore unit will sell its 30 percent stake in a Nanjing property company to AVIC Trust for an undisclosed sum, data from corporate registry search platform Tianyancha showed.

The Nanjing property firm, focused on valuation and management services, was set up in June 2020 with registered capital of 66.7 million yuan (HK$82.13 million).

Elsewhere, Ronshine China (3301) won't meet a March 31 deadline to publish audited full-year results after it became the latest property firm to announce the resignation of its auditor. The developer's stock and bonds plunged.