The indebted Chinese real estate group Evergrande suspended its listing on the Hong Kong Stock Exchange on Monday (03.01.2022) without offering an explanation, reports Chinese portal Sina.

Last night, the Chinese media echoed a document from the local government of Danzhou, in the southern island of Hainan, which ordered Evergrande to demolish 39 buildings within ten days because the project violated “urban and rural planning laws”, although the real estate group has not yet commented on the matter.

On December 31, in a year-end message to the group’s employees, its chairman and founder, Xu Jiayin, announced that the resumption rate of the comglomerate’s real estate projects had reached 91.7 percent, while promising a “bright future” for the company.

However, last month, debt rating agency Fitch had declared Evergrande in receivership for failing to pay amounts owed to its ‘offshore’ bondholders.

The rating agency also mentioned then the “uncertainty” about the situation of the group, which had recently set up a “risk control group” involving Xu Jiayin and state-owned companies from the southeastern province of Canton – where Evergrande is headquartered – and financial institutions.

After the creation of the group, the central bank and the banking and stock market regulators sent messages of reassurance that the risk of contagion from the Evergrande crisis was “controllable”.

Also, last December 26, the real estate company had promised that the number of homes delivered to its buyers would reach 39,000 in December, more than in the previous three months.

At the end of 2021, some commentators noted that the Chinese Communist Party had moderated its language regarding the real estate sector, which was interpreted as a possible easing of the restrictions Beijing imposed on access to bank financing for the most indebted developers.

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