China Evergrande, a heavily indebted property builder that has become a symbol of the sector’s turbulent liquidity crisis, said it had received guidance from the Hong Kong Stock Exchange on how to resume trading in its shares.
The company said in stock exchange documentation that the stock exchange had asked it to publish its outstanding financial results, to conduct and publish an independent investigation of its real estate services unit, to prove that it has sufficient assets to continue its activities, and make information about its financial situation publicly available. .
All securities suspended for 18 months or more will be canceled according to the exchange rules. That gave Evergrande a deadline of September 20 next year to resume its listing, the group added.
The company also said it was “actively pushing forward” with a plan to restructure its $ 300 billion debt, which it plans to release before the end of next month.
Chinese authorities have given priority to completing the construction of hundreds of the group’s projects, which are usually sold to ordinary buyers before completion © Qilai Shen / Bloomberg
The long-running liquidity crisis and Evergrande’s restructuring process were closely watched by investors, who were disappointed by the group’s non-transparency.
Chinese authorities have given priority to completing the construction of the group’s hundreds of projects, which are usually sold to ordinary buyers before completion, over the repayment of about $ 20 billion in dollar-denominated offshore bonds.
The company said it had launched an independent investigation into Evergrande Property Services, but there was no timetable for the process. An audit is under way, but is still unable to confirm when its annual results for 2021 will be released, Evergrand said, blaming the Covid-19 pandemic.
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