HomeNewsBusinessTroubled developer Evergrande to resume trading, warns of financial obligations

Troubled developer Evergrande to resume trading, warns of financial obligations

The company suspended trading on October 4 as it struggled in a sea of debt and faces a default, with its predicament fuelling fears of contagion through the Chinese economy.

October 20, 2021 / 19:32 IST
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China Evergrande
China Evergrande

Chinese developer Evergrande will resume trading in Hong Kong on Thursday, it said in a filing, but warned there was "no guarantee" it would be able to meet its financial obligations.

The company suspended trading on October 4 as it struggles in a sea of debt and faces a default, with investors' fearing the fallout from its predicament could impact the wider Chinese economy.

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On Wednesday, Evergrande said it had applied for a trading resumption to take effect the following day, although cautioned that "there is no guarantee that the group will be able to meet its financial obligations".

Evergrande's announcement came as China's new-home prices fell for the first time in six years last month, according to data on Wednesday, as the property sector struggled after a government clampdown.