Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China Evergrande NEV Shares Plunge After it Pulls Plug on CNY Share Issuance

Stock MarketsSep 27, 2021 12:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Gina Lee

Investing.com – China Evergrande New Energy Vehicle Group Ltd.’s shares plunged on Monday after it said on Saturday that it is abandoning a plan to issue CNY shares on Shanghai’s Science and Technology Innovation Board.

The electric vehicle unit of China Evergrande Group (HK:3333) also warned that it has an uncertain future unless it got a swift injection of cash.

China Evergrande New Energy Vehicle’s Hong Kong shares tumbled 10.31% to HK$2 ($0.26) by 12:39 AM ET (4:39 AM GMT), after plunging up to 26% and hitting HK$1.66 earlier in the session. China Evergrande shares were steady at HK$2.36.

The warning, issued after the market closed on Friday, was the latest sign that the property developer’s liquidity crisis is spreading to other business units.

However, concerns that a collapse at China Evergrande could drive a global economic contagion have ebbed for some investors.

“I think the markets have priced in that on the balance of probabilities, the shock and awe are over,” IG Markets analyst Kyle Rodda told Reuters.

“Markets are really just expecting from here on in, a company that is doomed to failure but one which won’t be allowed to result in major risks within the Chinese financial system, or that contagion won’t pervade global markets.”

China Evergrande missed a payment deadline on a dollar bond during the previous week and was granted a 30-day grace period. The company is due to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond on Sep. 29.

It currently has liabilities of around $305 billion and is scrambling to raise funds to pay it off. Currently, a meltdown with significant economic impacts, a managed collapse, or a bailout by the Chinese government, the least likely option, are all possible.

China Evergrande NEV Shares Plunge After it Pulls Plug on CNY Share Issuance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email