China Evergrande cancels plan for special dividend

Developer cites 'current market environment' and creditors' rights

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Shares of China Evergrande fell below HK$6 to a four-year low on Tuesday.  © Reuters

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent

HONG KONG -- The board of China Evergrande Group decided Tuesday to abandon a plan to declare a special dividend after a backlash from investors and banks, sending shares in the world's most indebted developer sharply lower.

Evergrande shares sank 13.4% in Hong Kong to HK$5.81, a four-year low. The stock has declined 42.6% during July alone.

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