Trading of Evergrande Group shares was suspended in Hong Kong on Monday, days after Chinese media reported that the indebted property developer would be forced to demolish a residential development in the southern province of Hainan.
The company, which has been at the centre of a sector-wide crisis in the country for months, disclosed in a filing to the Hong Kong stock exchange that the halt was “pending the release . . . of an announcement containing inside information”. The company did not add further details.
Evergrande missed a series of bond payments from September but had previously transferred the money owed before the 30-day grace periods ended. It was formally declared to have defaulted on its debts in December by rating agency Fitch after it failed to transfer funds due at the end of one such grace period.