Chinese property giant Evergrande suspends trading of shares in Hong Kong

Beijing [China], January 5 (ANI): China's property giant Evergrande Group Evergrande has suspended trading in Hong Kong as the heavily indebted company contends with an ongoing real estate crisis, CNN has reported.
In a filing to the Hong Kong Stock Exchange, Evergrande said that its trading halt was pending an "announcement containing inside information" though it did not elaborate.
Evergrande, China's most indebted developer, has about USD 300 billion in total liabilities, and analysts have worried for months about whether a collapse could trigger a wider crisis in China's property market, hurting homeowners and the broader financial system, according to CNN.
Meanwhile, the US Federal Reserve warned last year that trouble in Chinese real estate could damage the global economy.
CNN reported that Evergrande announced in December it would set up a risk management committee, including government representatives, to focus on "mitigating and eliminating" future risks.
Earlier in November 2021, a real estate developer Kaisa Group was at risk of default, escalating fears of further problems in the country's embattled property sector.
Shares of Kaisa Group, a Shenzhen-based developer, had also been suspended from trading in Hong Kong. The company's subsidiaries, which were also halted from trading, cited a "pending" announcement about the group in stock exchange filings, reported CNN.
Another real estate developer Modern Land is also struggling to pay its debts now. In recent weeks, a slew of developers has disclosed their own cash flow issues, asking lenders for more time to repay them or warning of potential defaults.
Kaisa had faced a setback as Fitch and S&P Global Ratings both downgraded the company, citing debt concerns. (ANI)