Evergrande Group Halts Trading in its Stocks

Trading in shares of the China Evergrande Group and two major subsidiaries were suspended on Monday while awaiting the release of inside information suggesting possible developments in the planned restructuring of giant developers.

Hong Kong-listed Evergrande, China Evergrande New Energy Vehicle Group Ltd and Evergrande Property Services Group Ltd were halted from trading before the market opened on Monday. 

Evergrande, which has accumulated over $ 300 billion in debt, defaulted on some offshore debt in December. In January, Evergrande planned to announce a global restructuring plan within six months after threatening to sue the company for some international bondholders failing to contact the company. 

Evergrande and its real estate services division suspended trading last year in negotiations to sell a majority stake in the services division to rival developer Hopson Development Holdings Ltd. Evergrande later cancelled the plan.

Despite many mitigations by Chinese authorities, local governments and banks to support the housing market and help developers access land financing, the turmoil has not subsided.