China Evergrande Shares Plunge 87% As Trading Resumes After 17-Month Hiatus

Hong Kong-listed shares of the world’s most indebted property developer, China Evergrande Group EGRNF, nosedived as much as 87% on Monday, resuming trade after a 17-month pause, CNBC reported.

The beleaguered company's shares fell down to 22 Hong Kong cents, a stark contrast to its last closing price of 1.65 Hong Kong dollars per share in March 2022.

The trading resumption coincides with Evergrande losing 39.25 billion yuan ($5.38 billion) for six months ending June. This was a considerable drop from the 86.17 billion yuan ($11.81 billion) loss reported for the same period a year ago.

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The company’s revenue showed an upward trend, rising to 128.81 billion yuan ($3.95 billion) from 89.28 billion yuan ($12.24 billion) in June 2022.

Evergrande, which filed for Chapter 15 bankruptcy protection in a U.S. court in July, had total liabilities of 2.39 trillion yuan ($327.70 billion) as of June 2023, slightly lower than the previous six months.

The company’s total assets amounted to 1.74 trillion yuan ($238.56 billion) including cash and cash equivalents of 13.4 billion yuan ($1.83 billion).

Evergrande defaulted in 2021 and initiated an offshore debt restructuring program in March after facing challenges in completing projects and repaying suppliers and lenders.

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