Evergrande ReListing Backfires

Evergrande is in deep water as the Chinese property developer was authorized to be traded publicly once again after nearly a year and a half.

Evergrande experienced a suspension from the Hong Kong Stock Exchange in which the company was supposed to undergo serious restructuring. The rules of the stock exchange dictate that after 18 months of a suspension, the company faces a full delisting. Evergrande reached the 17-month mark and quickly pushed for a relisting despite the company failing to finish its restructuring plan.

The result was Evergrande’s stock prices falling by 87% on Monday with the company losing $4.5 billion throughout the first half of 2023.

Source: Wall Street Journal