China Evergrande shares fell after the president cut its stake in Investing.com

Author: Gina Lee

Investing.com – Developer China Evergrande Shares of the group (HK 🙂 fell 4.8% on Monday after Hui Ka Yan company president raised about $ 344 million.

The company’s Hong Kong shares fell 8.40% to HK $ 2.29 ($ 0.29) at 23:53 ET (4:53 AM GMT). China Evergrande New Energy Vehicle Group Ltd. shares of the electric vehicle unit also fell 13.11% to HK $ 4.11, China Evergrande said, while still looking at ways to pump the unit with different capital investors.

Hui sold a total of 1.2 billion shares of China Evergrande, the company said on Friday. The shares were priced at an average price of HK $ 2.23 each, a 20% discount on the November 24 closing price, and Hui’s stake fell to 67.9% from 77%. Buyers were not disclosed.

China is desperately raising capital Evergrande to deal with its more than $ 300 billion in liabilities, and Chinese authorities have told Hui to use part of his personal wealth to help pay bondholders.

Investors are now waiting to see if they will be able to meet their obligations on the $ 82.5 million coupon payments that were made on Nov. 6. The 30-day grace period ends on December 6th.

China Evergrande is one of the most prominent players in the real estate sector that has struggled with debt and credit ratings in recent months, but it is far from the only one. Fantasia Holdings Group Co. Ltd. (HK 🙂 on Monday suspended trading shares in Hong Kong until the information was released. He said Thursday he had filed a petition for destruction against a unit associated with an outstanding loan.