Chinese real estate developer China Evergrande Group lost $2 billion, or 80% of its market value, in its first trading session after a 17-month hiatus, Reuters reported.
Its Hong Kong-listed shares fell 79% to HK$0.35 in the second half of trading on Monday, cutting losses from 87% at the open. Market capitalization has shrunk to HK$4.6 billion ($586.38 million) from HK$21.8 billion ($2.78 billion) since last trading. Trading in the shares was suspended from March 21, 2022 and resumed after the company stated that it had complied with all conditions of the Hong Kong exchange.
Evergrande is struggling amid the real estate crisis in China, which has seen a string of debt defaults since late 2021. The developer is in the process of obtaining creditor and court approval for a debt restructuring plan.
Evergrande said on Monday that meetings with creditors will be rescheduled from August 28 to September 26 as "it is imperative that all ... creditors understand the process of the proposed restructuring and its terms." Evergrande needs the approval of more than 75% of the holders of each class of debt to approve the plan, which offers lenders options to swap debt for new bonds and equity-linked instruments backed by its shares and those of its Hong Kong companies.
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