Embattled China Evergrande shares halt trading By Reuters

© Reuters. FILE PHOTO: The How to charge futures feesChina Evergrande Centre building sign is seen in Hong Kong, China, September 23, 2021. REUTERS/Tyrone Siu/File Photo

HONG KONG (Reuters) -China Evergrande Group shares will be suspended from trading on Monday, the embattled property developer said without giving a reason.

Evergrande, the world's most indebted developer, is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of international market bonds that were deemed to be in cross-default by ratings firms last month after it missed payments.

The property developer missed new coupon payments worth $255 million due last Tuesday< VG162759965=>, though both have a 30-day grace period.

The firm has set up a risk management committee with many members from state companies, and said it would actively engage with its creditors.

On Friday, Evergrande dialled back plans to repay investors in its wealth management products, saying each investor in its wealth management product could expect to receive 8,000 yuan ($1,257) per month as principal payment for three months irrespective of when the investment matures.

The move highlights the deepening liquidity squeeze at the property developer.

Shares of Evergrande shed 89% last year, closing at HK$1.59 on Friday.

Its EV unit China Evergrande New Energy Vehicle Group plunged as much as 10% in early trading on Monday, while property management unit Evergrande Services declined 2.3%.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!