Evergrande Group Shares Surge Despite Persisting Woes

Evergrande Group Shares Surge Despite Persisting Woes

On Thursday, shares of Evergrande Group surged despite persisting woes that placed investors on edge.

The cash-strapped company soared 14.54% or 0.04 points to $0.34 per share after recovering from an almost two-week low. 

Accordingly, some positive news from China Evergrande supported the recent hike, while its year-to-date plunge is still at 80.00%.

Moreover, the property developer ensured its investors with quality delivery of properties and redemption of wealth management products.

Currently, the firm has $6.00 billion of wealth management products outstanding and hundreds of thousands of uncompleted homes to deliver.

In a late internal meeting, the Evergrande Group also weighed on the significance of resuming constructions.

However, traders are still on edge about the capability of the struggling Evergrande Group to meet its $300.00 billion worth of debt obligations. 

In addition, experts worry about its possible ripple effect on China’s financial system and the global economy.

Subsequently, the People’s Bank of China injected $13.90 billion into the banking system yesterday. 

At the same time, Evergrande’s unit Hengda mentioned that it had settled a coupon payment on an onshore bond.

Then, the market kept an eye close to whether the company will be able to pay its $83.50 million in dollar-bond interest today.

Also, other Chinese property developers posted gains on Thursday trading. 

For instance, Country Garden Holdings climbed 7.57% or 0.07 points to $0.99 per share. 

Likewise, Poly Real Estate edged up 0.36% or 0.01 points to $2.13 per share.

Consequently, Vanke improved 2.49% or 0.08 points to $3.18 per share. 

Then, Sunac China Holdings extended 10.94% or 0.20 points to $2.01 per share.

Asian Market Mostly Gains as Evergrande Surges

Furthermore, shares in the Asian market mostly gained as Evergrande Group’s stocks surged.

In China, the Shanghai Composite index rose 0.58% or 21.08 points to $3,649.57 per share. 

Similarly, benchmark Shenzhen Component hiked 0.78% or 111.68 points to $14,388.76 per share.

Elsewhere, Hong Kong’s Hang Seng index amplified 0.69% or 166.98 points to $24,388.52 per share. 

Accordingly, Tencent increased 1.60% or 0.92 points to $58.73 per share.

Conversely, Alibaba slipped 0.61% or 0.12 points to $18.98 per share. 

Then, South Korea’s KOSPI index declined 0.37% or 11.52 points to $3,128.99 per share. 

Moreover, markets in Japan closed in line with the Autumnal Equinox day and Citizens’ holiday.