The beleaguered Chinese property developer Evergrande has witnessed a staggering decline of nearly 80% in the value of its shares during its first day of trading in Hong Kong after an 18-month suspension.
Over the past three years, Evergrande’s shares have plummeted by over 99%, largely due to Beijing’s stringent regulatory measures targeting the property sector. This decline has coincided with Evergrande’s central role in a real estate market crisis that poses a significant threat to the world’s second-largest economy.
Amid this turmoil, the company reported a loss of 33 billion yuan ($4.5 billion; £3.6 billion) for the initial half of the current year. Though still significant, this loss marked an improvement compared to the 66.4 billion yuan loss reported during the same period the previous year.
Evergrande’s leadership indicated that they have undertaken various measures to bolster the liquidity and financial health of the group. This statement was made in a filing to the Hong Kong Stock Exchange.
Despite the challenging circumstances, Evergrande disclosed that its revenue for the first six months of the current year had surged by 44%, reaching 128.2 billion yuan, in contrast to the previous year. However, the company’s cash reserves dwindled by 6.3% during the same timeframe.
Trading in Evergrande shares had been suspended since March of the preceding year. The resumption of trading only underscored the continued turmoil the company faces within the volatile real estate market.
