A pedestrian walks past the China Evergrande Centre in Hong Kong, China.
Chan Long Hei/Bloomberg
Shares of embattled property giant China Evergrande Group (ticker: 3333.Hong Kong) tumbled again Monday, hitting 11-year lows at one point and sending Hong Kong’s broader stock market lower as contagion fears spread.
Property stocks were among the worst hit as Evergrande’s mounting problems sparked a wider selloff, albeit on a thin trading day with holidays in Japan, China and South Korea. Shanghai-based developer Sinic Holdings (2103.Hong Kong) halted trading after its stock plunged 87% in Asia trading, while Henderson Land Development (0012.Hong Kong) slumped more than 13%. The Hang Seng Properties Index dropped 6.7%.
The world’s most indebted developer owes more than $300 billion but Chinese authorities have warned banks Evergrande won’t be able to pay debt obligations due Sept.20, according to multiple reports. Evergrande said Sunday it has begun repaying investors in its wealth management products with real estate.
Evergrande stock was trading 19% down at one point on Monday, reaching its lowest level since May 2010, before recovering slightly to trade 10% lower. The stock is now 85% down year-to-date.
The broader Hang Seng Index slumped 3.3% and has now fallen 11.5% year-to-date. Early U.S. premarket trading suggested the selloff may be set to spread to New York, as Dow futures were close to 500 points, or 1.4%, lower.
Write to Callum Keown at [email protected]
