Evergrande shares were suspended this morning as rumors circulate of a major bailout deal for the beleaguered real estate giant.
Trading was on hold pending the announcement of a “major trade,” Evergrande said in a stock file. The company’s property management arm said it was halted ahead of a possible stock offering.
Local media reported that Hopson Development, whose shares were also suspended, is considering acquiring 51% of Evergrande Property Services.
Uncertainty over Evergrande’s debt of over $ 300 billion has rocked global markets, stoking fears of a collapse that could spill over to the entire economy.
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What happened during the night
Asian markets were mixed on Monday, with Shanghai closed for National Day.
Hong Kong’s benchmark fell more than 2% after shares in struggling real estate developer China Evergrande were suspended.
The company didn’t say why, but a Chinese financial information service, Cailian, said another major developer was planning to buy Evergrande’s property management unit.
Evergrande is struggling to make payments on tens of billions of dollars in debt as it suffers a cash crunch brought on by the Chinese government’s tightening restrictions on debt financing.
The Hang Seng fell 2.3% to 24,011.72 while Tokyo’s Nikkei 225 fell 1.1% to 28,457.15. Shares also fell in Taiwan. The Australian S & P / ASX 200 climbed 0.8% to 7,246.10.
Markets were closed for the holidays in Shanghai and South Korea.
Business: nothing major on the agenda
Economy: OPEC meeting, factory orders (US)