China Evergrande Group witnessed a notable uptick in its shares, with a nearly 4% increase during early trading on Wednesday, signaling a modest rebound following recent sharp declines.
This surprising surge in share prices transpired amidst a backdrop of heightened uncertainty surrounding the embattled property developer. Reuters recently reported that several of Evergrande’s offshore creditors are contemplating joining a court petition for liquidation against the company if it fails to submit a revised debt restructuring plan by the end of the upcoming month.
At the opening bell, Evergrande’s Hong Kong-listed shares experienced a dip of 3.8%, reaching HK$0.38. However, they swiftly rebounded and surged by nearly 4% during early trading.
Nonetheless, it is important to note that the stock still lingers at approximately 25% below its value as of Monday. This dramatic downturn ensued following Evergrande’s announcement a day earlier, wherein the company disclosed its inability to issue new bonds as a crucial component of its debt restructuring efforts. This setback is attributed to an ongoing regulatory investigation into its primary Chinese subsidiary.
In a concurrent development, Hengda Real Estate, the aforementioned subsidiary, disclosed on Monday that it had failed to meet the obligation of paying both the principal and interest amounting to 4 billion yuan ($547 million) on a bond due by September 25th.
