Chinese developer shares tumbled following local media reports that China Evergrande Group has been ordered to tear down apartment blocks in a development in Hainan province. Evergrande halted trading in its shares.
An index of Chinese developer shares slumped 2.8 per cent as of 11:37 a.m. local time, with Sunac China Holdings and Shimao Group Holdings plunging more than 10 per cent. A local government in Hainan told Evergrande to demolish 39 buildings in 10 days because the building permit was illegally obtained,reported on Saturday. Evergrande gave no details on the trading suspension other than saying it would make an announcement containing inside information..
Contracted sales for 31 listed developers fell 26 per cent in December from a year earlier, according to Citigroup analysts. Evergrande’s sales dropped 99 per cent and were 7 per cent lower than November, the analysts wrote in a note dated Sunday. Sales for Shimao slid 25 per cent from November. The slump in developer shares wasn’t matched by their bonds. Chinese high-yield dollar bonds rose as much as 1 US cent on the dollar on Monday morning, according to credit traders.
This is interesting that a provincial government taking on a central government owned entity?
What a joke! China can’t be trusted with their own people let alone globally chinasyndrome evergrande auspol springst globalmeltdown property default bond
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That’s some serious repercussions!