Hong Kong (Reuters)-China EverGrande Group’s share price surged more than 13% on Monday, the day after a confused developer announced that it would appoint a board of directors for the country’s asset manager, China Cinda Asset Management.
Evergrande’s assets are expected to be taken over by state-owned enterprises in a developer-based Guangdong provincial government-led restructuring, and this appointment may indicate that restructuring is progressing.
The developer’s stock also gained support from a Friday report by financial intelligence provider REDD, which stated that the state government aims to announce Evergrande’s framework debt restructuring plan by March.
The report plans to separate the company’s offshore assets and sell them to repay their external debt, supporting foreign lenders’ desire to recover their funds.
Evergrande is the world’s most debt-rich real estate company with over $ 300 billion in debt. This includes nearly $ 20 billion of international bonds, all considered defaults after missing payments at the end of last year.
The developers said on Sunday that they would appoint two new directors, including part-time director Liang Sen Lin, chairman of China Sinda (HK) Holdings Company Limited, and one unit of one of the country’s four largest national asset management companies. rice field.
Evergrande last month established a risk management committee consisting primarily of senior officials from state-owned enterprises, including China Cinda Asset Management.
Another new board member is Siu Shawn, Chairman of China Evergrande New Energy Vehicle Group Limited. The company said in October that it would prioritize the growth of its early EV business over its core, troubled real estate business.
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Stock prices of China’s Evergrande surge after Reuters nominates state civil servants to become directors
https://www.investing.com/news/stock-market-news/shares-of-china-evergrande-jump-after-report-restructuring-plan-to-be-released-soon-2745868 Stock prices of China’s Evergrande surge after Reuters nominates state civil servants to become directors