Evergrande Shares Slump to a Multi-Year Low on Fresh Default Fears
Evergrande (3333) Prices, Charts, and Analysis
- Evergrande inches closer to default
- Shares continue to plummet.
A statement from beleaguered Chinese property giant Evergrande last Friday has sent the company’s shares tumbling to a fresh multi-year low over the weekend on renewed fears that the company is unable to pay its debts. The company’s statement said that in light of its current liquidity status, ‘there is no guarantee that the Group will have sufficient funds to perform its financial obligations’. Evergrande has been in the spotlight for months after it warned of a liquidity crisis servicing its estimated $300 billion of debts and with no progress made in finding a new source of funding, a default looks increasingly likely. Rating’s agencies Fitch and Moody’s slashed their outlooks for the company in September in line with levels typical of default.
With Evergrande now expected to be restructured, fears of a knock-on to other Chinese property groups are increasing. Today, Sunshine 100 China Holdings Ltd missed a $180 million payment of debt and interest payments, while the market will be watching closely to see if Kaisa Group Holdings Ltd can re-pay a $400 million bond maturing on Tuesday.
Evergrande Weekly Price Chart – December 6, 2021
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