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Just now, China Evergrande's share price has skyrocketed, but the winding-up petition is still pending. China Evergrande shares plunged more than 20% shortly after opening on Oct. 30, but then recovered, closing up more than 5% at midday. Meanwhile, Hong Kong's High Court will hear Evergrande's winding-up petition filed by offshore investor Top Shine Global.
If a winding-up order is granted, Evergrande will become the largest property developer in Hong Kong's legal history. However, the recent announcement by Evergrande shows that the High Court has adjourned the hearing of the winding-up petition to 4 December 2023. Although Evergrande's debt restructuring plan has been ongoing, the Hong Kong court has repeatedly postponed the winding-up hearing.
Regardless of whether it is ultimately a debt restructuring or bankruptcy liquidation, Evergrande's situation will provide an important reference for other real estate companies. Evergrande's creditors are closely following the winding-up petition hearing, hoping to learn where Evergrande is going so they can make their own decisions. Evergrande recently held talks with some of its creditors, but the details are not yet known.
Evergrande has said that there are two groups of creditors who do not give sufficient support to the offshore debt restructuring plan, with Class C creditors being the larger group. Despite jurisdictional issues in Chinese mainland and Hong Kong, Hong Kong courts have issued at least three winding-up orders against Chinese developers since the 2021 debt crisis. Once a winding-up order is issued, the court will appoint a liquidator to manage Evergrande's business and seek benefits for creditors.
At the same time, Huawei has also attracted the attention of the market. Recently, Huawei applied for the registration of the "Far Ahead" trademark, which has once again aroused consumer attention to Huawei's technological revolution. Huawei recently held a new M7 press conference in Shanghai, although it did not release new product information such as mobile phones, but the entries related to the conference were swiped on social platforms.
Huawei's senior executive, Yu Chengdong, repeatedly mentioned "far ahead" and "leading" at the press conference, which sparked applause from the audience. The technological revolution led by Huawei has triggered a new wave of consumption, and the consumer electronics sector continues to strengthen. To sum up, the volatility of China Evergrande's share price and the adjournment of the hearing of the winding-up petition show that the future of Evergrande remains uncertain.
Creditors are very concerned about the whereabouts of Evergrande, as it will provide an important reference for other real estate companies. At the same time, Huawei's technological revolution has sparked consumer attention and promoted the development of the consumer electronics sector. We will continue to follow the dynamics of Evergrande and Huawei in order to provide readers with timely information. How do you think Evergrande's debt crisis will develop? How will Huawei's technological revolution affect the consumer market? Welcome to leave a message to discuss.