Dow Today – China Evergrande Shares Jump After Appointing China Cinda Executive
By Yifan Wang
Shares of China Evergrande Group soared on Monday after it appointed an executive at the state-owned China Cinda Asset Management Co. to its board, a sign that the struggling developer is making some progress toward resolving its liquidity crisis.
The Hong Kong-listed stock gained as much as 13% within a few hours of trading, and was last up 5.6% at HK$1.89. The shares are 88% lower from a year ago.
Evergrande on Sunday said it had appointed Liang Senlin, who is the chairman of China Cinda’s Hong Kong unit, as a non-executive director.
A Hong Kong-based analyst said the appointment could be a signal that the Chinese real estate giant is close to securing investment from China Cinda, one of the country’s largest bad-debt managers.
The analyst noted that Beijing’s earlier bailout of bad loan buyer China Huarong Asset Management Co. was also preceded by the appointment of a former China Cinda executive.
Reuters reported on Monday that financial intelligence provider REDD said China’s provincial government of Guangdong, where Evergrande is based, aims to release the framework of a debt restructuring plan by March.
Write to Yifan Wang at [email protected] Zoom.com
(END) Dow Jones Newswires
January 24, 2022 00:21 ET (05:21 GMT)
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