ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
China debt crunch

China Evergrande shares tumble after failure of sale talks

Developer running out of options as default deadline looms on Saturday

HONG KONG -- Shares of China Evergrande Group slumped as much as 14.2% as they resumed trading in Hong Kong on Thursday after a three-week halt as the debt-strapped developer sought unsuccessfully to sell a controlling stake in its property management business.

The collapse of talks to sell the 50.1% stake in Evergrande Property Services to Hopson Development Holdings for 20.04 billion Hong Kong dollars ($2.58 billion), revealed in an exchange filing late Wednesday evening, ratchets up the odds that Evergrande will default on an offshore bond later this week.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more