The stock market value of China Evergrande Group has tumbled after it resumed trading in its shares for the first time in more than a year.
The Chinese property developer’s shares plummeted by 90% after the Hong Kong market opened on Monday, with the ending of a 17-month suspension of the stock.
Over the weekend the world’s most indebted developer disclosed first-half losses of Rmb33bn (£3.4bn) in order to partially fulfil Hong Kong stock exchange requirements to lift the suspension. According to exchange rules, a company whose shares have been suspended for 18 months faces delisting.
Evergrande’s shares recovered slightly in the afternoon to record a fall of 79% on the day. The company’s market capitalisation fell to HK$4.6bn (£470m) from HK$21.8bn (£2.2bn).
Talks about restructuring the group’s debt have been pushed back to 26 September.
Two years ago it nearly collapsed under the weight of debt reaching $340bn, equivalent to about 2% of China’s entire GDP
