29 Nov 2021
Evergrande Shares Fall After Chairman Sells Stake
The Index Today
China Evergrande Group’s shares saw a major decline of 4.8% on Monday. The slump in shares occurred after the chairman sold off some of his stake to raise $344 million.
The company’s shares fell by 8.40% to HK$2.29 by 11:53PM ET. On the other hand, the electric vehicle unit of Evergrande also saw shares fall by 13.11% to HK$4.11. Evergrande’s slump in shares came after it said it still in the process of finding ways to raise investment.
Evergrande’s chairman sold around 1.2 billion worth of shares with an average share price of HK$2.23. The company has been struggling to manage its debt crisis in the past months. Authorities have asked the company to tap into its personal wealth fund to raise money to pay off bondholders.
Investors are eagerly waiting to see if the coupon payments worth $82.5 million will be paid by the company soon. These coupon payments were due on the 6th of November and come with a grace period of 30 days. China Evergrande is one of the leading organizations in the real estate sector and has suffered a debt worth 300 billion.