Hong Kong suspended trading in shares of the world’s most indebted property developer Evergrande on Monday pending a release of “inside information” from the Chinese company that could shed light on its restructuring and the fate of international investors.
The real estate developer, which defaulted on its international debts last year alongside a host of its peers, is at the centre of a nationwide liquidity crisis across China’s property sector, which drives economic growth and underpins employment.
Evergrande’s restructuring, which is expected to be the largest ever in China, is a defining moment in the history of Asia’s dollar bond market. The company borrowed more than $20bn in dollar-denominated bonds of its more than $300bn in liabilities. But it has made few detailed disclosures as Chinese authorities work to limit the impact of the company’s collapse.