E.grande, the real estate company from China with over 300 billion dollars in debt, sent a sign of hope on Monday that it could once again avert bankruptcy and the subsequent crisis in the Chinese economy.
Evergrande’s shares were suspended from trading after the company announced that its Hong Kong-listed subsidiary Evergrande Property Services could be acquired by a competitor in China and provide the parent company with a much-needed injection of capital.
Trading in Evergrande Property shares has also ceased. The company operates residential complexes, office buildings, amusement and industrial parks, health centers and schools and was only listed on the stock exchange in December. According to Chinese media reports, the Chinese real estate developer Hopson now wants to take over 51 percent of the shares. There was confusion about the amount Evergrande was taking. According to some reports, Evergrande Property would be valued significantly lower at a discount of 28 percent on the deal with a total of 40 billion Hong Kong dollars (4.43 billion euros) than before the trade freeze.