Evergrande Shares Jump in Afternoon Trading as Group Units Rally
Evergrande Shares Jump in Late Afternoon as Group Units Rally
(Bloomberg) -- China Evergrande Group shares climbed in late afternoon trading along with those of its electric vehicle and property management units. Traders struggled to pin down reasons for the gains, which pared toward the close.
Evergrande rose as much as 11% before closing up 6.6% at HK$2.93 in Hong Kong. China Evergrande New Energy Vehicle Group Ltd. jumped 15%. Evergrande Property Services Group Ltd. rallied 8.4%.
There were multiple block trades conducted after 2:40 p.m. local time Tuesday, with a single trade of almost 1.9 million Evergrande shares crossing at HK$2.93 apiece.
“There are many block trades within a few minutes, so the market is wondering what’s going on,” said Jackson Wong, asset management director at Amber Hill Capital Ltd. “It’s really hard to tell, but the market is very excited.”
Evergrande shares worth nearly $1 billion appeared in Hong Kong’s Central Clearing and Settlement System on Friday, a sign that founder Hui Ka Yan may be pledging part of his stake as collateral for loans. The group has been scrambling to raise funds to repay debts amid an industrywide liquidity squeeze.
HengTen Networks Group Ltd. was up 25%. The stock has surged 115% in four days after Evergrande agreed to sell its entire 18% stake in the company at a discount. The buyer is sitting on huge paper profits as result.
Evergrande’s dollar bonds remained muted, with its 8.75% note due 2025 largely unchanged at 23.4 cents on the dollar, according to Bloomberg-compiled data.
Evergrande’s fund raising: | |
---|---|
Nov. 19 | Evergrande NEV raises $347 million selling new shares |
Nov. 17 | Evergrande sells stake in HengTen for $273 million |
Nov. 16 | Hui Ka Yan’s associate pledges two houses for $105 million loan |
Nov. 10 | NEV raises $64 million selling new shares |
Nov. 5 | Evergrande sells jets for more than $50 million: Dow Jones |
Nov. 4 | NEV sells Protean Electric for undisclosed amount |
Aug. 17 | Evergrande sells stake in Shengjing Bank for $154 million |
©2021 Bloomberg L.P.