After the giant Chinese real estate company Evergrande approached bankruptcy, and the share price of the company, which suffers from huge debts, fell about 80% since the beginning of the year, the company decided to suspend trading in its shares on the Hong Kong Stock Exchange without explaining the reasons for this move.
And according to Arab Net, the company said in a statement: Trading in the shares of the Chinese Evergrande Group will be suspended on the Hong Kong Stock Exchange, adding that, accordingly, trading in all products related to the company will also be stopped at the same time.
But the shares of the group's electric car company, which last week canceled a proposal to list on the Shanghai Stock Exchange, were not suspended, with its shares falling 6% in early trading.
This coincides with news that the Chinese real estate company has reached an agreement to sell 51% of its property management arm Evergrande Property Services to Hopson Development Holdings for $5 billion.< /p>
Last week, Evergrande announced its intention to sell its $1.5 billion stake in a regional Chinese bank, as it battles interest payments to its bondholders.
There are fears that China, the second largest economy in the world, will repeat the scenario of the American Lehman Brothers, whose bankruptcy caused the crisis in the United States in 2008.< /p>
All eyes are on the Chinese government, which has not indicated whether or not it intends to intervene on behalf of the special group.
Chinese authorities have told local governments to prepare for a possible collapse of the Evergandy Group, according to reports, indicating that a major government rescue plan is unlikely.
The group's liquidity shortage has led to rare protests outside its offices in China, as investors and suppliers demand their money back.
The group acknowledged that it faces unprecedented challenges, warning that it may not be able to meet its commitments.
