Trading in Evergrande shares is suspended again

Trading in shares of the Chinese construction firm China Evergrande Group was suspended again on the Hong Kong Stock Exchange due to a debt of $ 330 billion.

This happened after yesterday's decline in the value of the company's shares by 20%. The fall in securities was caused by the news that the founder and chairman of the board of directors of Evergrande Xu Jiayin was detained by the police in early September. The country's legislation prohibits him from contacting other people without the consent of the authorities, and all documents have been confiscated from him.

Recall that the difficulties of the Evergrande holding began in 2021 due to deep financial problems. On March 21, 2022, the company stopped trading its shares. After a 17-month break and a complex restructuring process, on August 28, 2023, she returned to the stock exchange. 

Nevertheless, in September, the company's share price dropped by 20% twice due to ongoing investor concerns.

Analysts note that Evergrande is not just one company, it is the largest player in the Chinese real estate market. Its problems can affect the entire industry and even the economy of the country as a whole.