The shutdown of stock trading comes, according to experts, as the financially troubled Chinese company again has to pay back part of a huge debt.
Evergrande is burdened by a debt of 260 billion euros. The threat of Evergrande’s bankruptcy has fascinated investors worldwide for some time. The value of the company’s stock has fallen 80 percent in the past year.
Should smaller investors in the Netherlands be concerned about the project developer that could fall over? In this article, RTL Z answers four questions about this.
Missed payment deadline
Evergrande’s issues, including missing a bond payment deadline two weeks ago, are barely covered in official Chinese media. The Beijing government has also made little public comment on the situation.
Shares of the auto manufacturing arm of the China Evergrande Group continued to trade on the Hong Kong stock exchange this morning. Trading in shares of the company’s real estate division has been halted.
Chinese are angry and anxious as the mega-corporation is on the brink of collapse, as seen in this video: