Evergrande's Debt Woes Send China Property Stocks Plummeting
Shares of Evergrande, the embattled Chinese real estate firm, dropped as much as 25% after announcing a delay in a debt restructuring meeting. This caused a sell-off in other major Chinese property stocks, with the Hang Seng Mainland Properties index sliding over 4%. Evergrande's shares have plummeted 87% since resuming trade in August 2021, turning it into a penny stock. The company filed for Chapter 15 bankruptcy protection in the U.S. in August, and its affiliate Tianji Holdings and subsidiary Scenery Journey also filed for protection. Evergrande, the world's most indebted property developer, defaulted on its debts in 2021 and had its shares suspended from trading in March 2022.