Big news! Evergrande will resume trading tomorrow!
Hengda listed companies that have attracted much attention have the latest developments.
On the evening of October 2, China Evergrande and Evergrande Properties, which were temporarily suspended for two trading days, announced that they would resume trading at 9 am on October 3.
China Evergrande said it had released news on the evening of September 28 that Xu Jiayin, chairperson of the company’s board of directors, had been taken coercive measures on suspicion of illegal crimes. The company’s board believes that there is no other inside information to be released at present, after the company briefly suspended trading on the morning of September 28.Now I am applying to the Hong Kong Stock Exchange to resume trading in the company’s shares at 9 am on October 3.
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China Evergrande and Hengda Properties will resume trading
The impact of coercive measures on the stock price of a company’s board chairperson will be known tomorrow.
On the evening of October 2, China Evergrande announced in the Hong Kong Stock Exchange that the company issued an inside information announcement on September 28, 2023. The company received a notice from the relevant departments that Xu Jiayin, the executive director and chairperson of the board of directors of the company, has been subject to compulsory measures according to law due to suspected illegal crimes. The board of directors believes that there is no other inside information of the company that needs to be announced at present. The shares of the company will be suspended from trading on the Hong Kong Stock Exchange from 9:00 am on September 28, 2023. The company has applied to the Hong Kong Stock Exchange to resume trading in the company’s shares from 9:00 am on October 3, 2023.
Similar to China Evergrande, Evergrande Property announced in the Hong Kong Stock Exchange on the evening of October 2 that the board of directors believes that the company’s operating conditions are normal and there is no other inside information that needs to be announced. Trading in the company’s shares will be suspended on the Hong Kong Stock Exchange from 9:00 am on September 28. Evergrande Property has applied to the Hong Kong Stock Exchange to resume trading in the company’s shares from 9:00 am on October 3.
It is worth noting that Evergrande, which is in the process of leading the war to increase its capital, has not issued a similar resumption announcement.
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It was briefly suspended due to the arrest of Xu Jiayin
Looking back, because Hengda founder Xu Jiayin was forced to take measures, Hengda’s three companies resumed trading after more than ten months of suspension, and were briefly suspended. On the morning of September 28, the Hong Kong Stock Exchange announced that China Hengda, Hengda Property and Hengda Automobile had disclosed announcements and temporarily stopped trading at 9 am that day.
According to public information, "short-term suspension" refers to the interruption of the issuer’s securities trading for no more than two trading days as required or instructed, and the short-term suspension of trading for more than two trading days automatically becomes a suspension.
It is worth mentioning that it did not take long for the three "Evergrande" companies to resume trading. On July 28, Evergrande Automobile became the first "Evergrande" listed company to resume trading; on August 3, Evergrande Property resumed trading; on August 28, China Evergrande, which has been suspended for 17 months since March 21, 2022, resumed trading "on the spot" to remove the risk of being delisted and delisted.
Therefore, in terms of time, if the Hong Kong Stock Exchange opens on October 3, China Evergrande’s failure to resume trading will become a long-term suspension.
On September 27, the Hong Kong stock "Evergrande" stock price plunged across the board. As of the close of the day, China Evergrande fell 18.99% to HK $0.32/share, with a total market value of 4.225 billion Hong Kong dollars. Evergrande Automobile fell 20% to HK $0.56/share, with a total market value of 6.073 billion Hong Kong dollars. Evergrande Property fell 14.49% to HK $0.59/share, with a total market value of HK $6.378 billion.
On the evening of September 28, the reasons for the temporary suspension of three Hengda companies were revealed: China Hengda received a notice from the relevant departments that Xu Jiayin, the executive director and chairperson of the board of directors of the company, had been taken compulsory measures according to law for suspected illegal crimes.
Before this, China Hengda also had a bad news, its update overseas workout news said that in view of the subsidiary Hengda Real Estate is being investigated, China Hengda is currently unable to meet the issuance qualification of new notes.
On October 3, China Evergrande and Hengda Property resumed trading, which may be one of the focuses of the market.