Shares In China Evergrande Higher On Asset Sales Report Despite Dire Outlook

11th August 2021
Shares In China Evergrande Higher On Asset Sales Report Despite Dire Outlook

It’s been a troubling few months for China Evergrande. Just last month, the real estate giant cancelled a special dividend despite promising it two weeks prior, faced credit rating downgrades and was also hit by several lawsuits for non-payment.

Evergrande is getting sued for non-payment so often that a court in Guangzhou has been designated to take on all Evergrande lawsuits, Caixin reported citing sources with knowledge of the situation.

That doesn’t seem to matter though as shares in China Evergrande continued to rise after saying that it is in talks to sell assets including part of Hong Kong-listed Evergrande New Energy Vehicle Group and Evergrande Property Services Group.

It also doesn’t seem to matter that Evergrande New Energy Vehicle has said net losses are expected to widen for 1H2021.

Despite being worth USD 87 billion, it has yet to sell a single vehicle and suffered a net loss of CNY 4.8 billion (USD 740 million) for 1Q – double that of last year.

Evergande is also looking for buyers for some of its urban renewal projects in Shenzhen. Discussions surrounding sale and partnerships are also being held with state-owned enterprises.

The property giant is offloading assets in an attempt to retain cash but it still has some shredding to do to cover its looming USD 301 billion debt.

Image credit: Oriental Image via Reuters

Written by Bread News Team
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