Surprised? China Evergrande, resumption of trading soared 40%

China Evergrande and Evergrande Properties, which were suspended because Xu Jiayin was taken compulsory measures, ushered in the resumption of trading today. Evergrande Automobile, which was suspended on the same day, has not announced the resumption of trading.

Xu Jiayin is suspected of breaking the law and committing crimes, which casts a new shadow over Evergrande's debt restructuring process. However, capital has shown different enthusiasm for the two resumption of trading Evergrande companies. At today's open, the shares of China Evergrande and Evergrande Property both jumped higher. As of press time, China Evergrande once rose 40%, and Evergrande Property rose more than 10%.

Two Evergrande companies resumed trading

China Evergrande announced on the evening of October 2 on the Hong Kong Stock Exchange that the inside information announcement issued by the company on September 28 related to the fact that the company received a notice from the relevant departments that Mr. Xu Jiayin, executive director and chairman of the board of directors of the company, has been taken compulsory measures in accordance with the law due to suspected violations and crimes. The Board believes that there is no other inside information that the Company currently needs to be published. Trading in the Company's shares will cease on the Stock Exchange with effect from 9am on 28 September. The Company has applied to the Stock Exchange to resume trading in the Company's shares with effect from 9am on 3 October.

At the same time, Evergrande Property also issued an announcement on the same day, the board of directors believes that the company's operating conditions are normal and there is no other inside information that needs to be announced. Trading in the Company's shares will cease on the Stock Exchange from 9am on 28 September. The Company has applied to the Stock Exchange to resume trading in the Company's shares with effect from 9am on 3 October. However, as of press time, Evergrande Automobile, which is also a member of the important territory of Evergrande listed companies, has not yet issued an announcement on the resumption of trading. Evergrande Automobile also made an appearance at the recently opened Tianjin International Auto Show.

Stock prices jumped

Before the suspension, the trading of the three companies of Evergrande was fixed on September 27. In the afternoon of the same day, the stock price of Evergrande fell sharply. As of the close, Evergrande Auto fell more than 20%, while China Evergrande and Evergrande Property fell 18.99% and 14.49% respectively. All three companies have "become immortals" in their share prices. The total market value of China Evergrande exceeded HK$4 billion, while the total market value of Evergrande Auto and Evergrande Property exceeded HK$6 billion. On September 28, three Evergrande companies, China Evergrande, Evergrande Automobile, and Evergrande Property, issued an announcement that trading of the company's shares was temporarily suspended from 9 a.m. Since then, the resumption of trading performance of China Evergrande and Evergrande Property has always been the focus of market attention. Many investors in the stock bar said that the speed exceeded expectations, some investors thought that "boots landed" and "profits ran out", while others said that "they can't run away" and "turn off the lights and eat noodles". It is worth noting that these three Evergrande companies have not long resumed trading. At the end of July, Evergrande Automobile became the first listed company of the "Evergrande series" to resume trading; In August, Evergrande Property and China Evergrande also resumed trading, removing the risk of being delisted and delisted.

or affect debt restructuring

Before Xu Jiayin was taken compulsory measures in accordance with the law, on September 16, the public security organs had taken criminal compulsory measures against Du of Evergrande Financial Wealth Management (Shenzhen) Co., Ltd. and other suspected criminals. In order to avoid bankruptcy liquidation, Evergrande initiated overseas debt restructuring very early, and issued a proposed overseas debt restructuring announcement in March this year. However, the process of Evergrande's debt restructuring was not smooth. On the one hand, debt restructuring meetings were postponed indefinitely; At the same time, Evergrande has no longer met the qualifications for the issuance of new notes.

Responsible editor: Liu Anqi | Reviewed: Li Zhen | Supervisor: Wan Junwei

(Source: Company E)