Evergrande stocks are back in trade after suspension

The Chinese property mogul Evergrande’s shares are back on the stock exchange in Hong Kong as of Tuesday, October 3. This is after shares in the troubled Chinese real estate company were temporarily suspended on Thursday last week.

The resumption of share trading happened after a request from the company, which was submitted on Monday evening. It is unclear what the request was about.

It is only a month ago that shares of the debt-ridden company resumed on the stock exchange after it had been suspended for 17 months.

Last week, it was reported that the company’s chief executive, Xu Jiayin, was detained by the police. Subsequently, the company stated that he was suspected of a number of unknown crimes.

The real estate sector is a crucial part of China’s economy. Along with construction, it accounts for approximately a quarter of the country’s gross domestic product. The Chinese government has increasingly started to look at the large debt that the industry has taken on. Evergrande has become a symbol of the problems that have resulted in a series of bankruptcies within the real estate industry.

China is the world’s second largest economy, and many have feared that the crisis in the Chinese property sector could have an impact worldwide.

Source: bt.dk

About Miabell Mallikka

Miabell Mallikka is a journalist working with ScandAsia at the headquarters in Bangkok.

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