Shares of Chinese real estate developer Evergrande have been suspended on the Hong Kong stock exchange. The chairman of the company has reportedly been placed under surveillance, adding to the ongoing troubles faced by the embattled firm. Evergrande’s shares were last valued at 32 Hong Kong cents. This is not the first time the company’s shares have been suspended, as trading was halted for 17 months last year due to financial difficulties.
Earlier this month, Evergrande delayed a debt restructuring meeting with creditors, citing underperformance in sales. The company stated that it needed to reassess the terms of the proposed restructuring to accommodate its current financial situation and creditor demands. Additionally, Evergrande disclosed that an investigation into its subsidiary, Hengda Real Estate, had prevented the issuance of new notes under its debt restructuring plan. Reuters reported that the Chinese securities regulator is investigating the Evergrande unit for suspected violation of information disclosure. These developments come after the recent detention of some staff at Evergrande’s wealth management unit and the company’s application for Chapter 15 bankruptcy protection in the United States.
