After the failed deal with Hopson Development Holdings, the stock of Chinese real estate developer China Evergrande fell nearly 11% on the Hong Kong stock exchange.
Hopson was supposed to buy some assets of this giant. Evergrande, is in the spotlight around the world for the debts that have brought it to the brink of bankruptcy. He had entered into negotiations to sell part of his services division to his rival. However, the Shenzhen group, with debts of 305 billion dollars, has formalized the failure of the negotiations with the Hopson Development group (+ 5% on the stock exchange) on the sale of 50.1% of the subsidiary Evergrande Property Services, active in real estate management, at the revised price of $ 2.58 billion.
Evergrande warned yesterday that “there is no guarantee that the group will be able to meet its financial obligations” in the face of a critical liquidity situation. After the agreement at the end of September on the sale of 19.93% of Shengjing Bank for 1.5 billion dollars to service the debts owed to the bank itself, “there has been no material progress in the sale of the group’s assets” which “Will continue to implement measures to alleviate liquidity problems” in line with what was already announced in the communications at the end of August. In other words, Evergrande has not made substantial progress on the sale of assets: the recent stalemate on the sale for 1.7 billion of its Hong Kong office to the real estate company Yuexiu, was joined by the one with the Hopson group.