World Protesters hauled away from Evergrande HQ as meltdown fears mount
Shares plunge, ratings cut at indebted China developer Evergrande
Shares of embattled Chinese real estate giant Evergrande plunged on Tuesday, deepening an investor retreat with analysts cutting its credit and stock ratings again. The Hong Kong-listed company is one of China's largest and most indebted private conglomerates, and fears have mounted that it is on the brink of bankruptcy after years of rapid growth and a buying spree. On Tuesday, its Hong Kong traded shares plummeted as much as 8.8 percent to HK$3.53 -- sliding down towards the price it initially listed at in 2009 -- before closing 7.75 percent down.
Security personnel in the Chinese city of Shenzhen on Thursday took away protesters who gathered outside the headquarters of cash-strapped real estate developer China Evergrande Group.
The country’s second-biggest property developer is wrestling with a liquidity crisis, scrambling to raise funds as it teeters between a messy meltdown with far-reaching impacts, a managed collapse or a government bailout.
Evergrande: China's fragile housing giant
Chinese housing giant Evergrande is one of the country's largest private conglomerates and world's most indebted property developer, teetering on the brink of bankruptcy after years of rapid growth and a buying spree. With a presence in more than 280 cities, Evergrande is one of the largest private companies in China and one of its leading real estate developers. The firm made its wealth over decades of rapid property development and wealth accumulation as China's reforms opened up the economy.
Disgruntled Evergrande investors, as well as vendors who say they are owed money, have gathered this week at company headquarters in the southern city and reportedly elsewhere in China.
“Every day, we’re here waiting for some sort of policy for us but nothing comes, so we have no choice but to stay,” one protester said.
Uniformed security could be seen detaining at least two among about two dozen protesters and forming a circle around those who remained, locking arms so that none could leave while the two were taken away.
Security personnel responded to sporadic chants of “Evergrande return our money” by waving a banner that said “police evidence” while an officer filmed the protesters who were shouting.
During a thunderstorm, a crying woman, who was sitting among remaining protesters and approaching security personnel, was carried away to a nearby police van.
Earlier on Thursday, Evergrande’s main unit, Hengda Real Estate Group Co Ltd, applied to suspend trading of its onshore corporate bonds following a downgrade.
Evergrande shares fell to their lowest in a decade as fears mount that a messy debt default could send shockwaves through China’s property market and the broader economy.
Those contagion fears weighed on Hong Kong stocks for a fourth straight day, dragging the Hang Seng index to a 10-month closing low.
Evergrande share places strongly - uncertainty remains .
The difficult-to-hit Chinese real estate company Evergrande has rising strongly on Thursday despite persistent fears of payment defaults on the Hong Konger Stock Exchange. © Andy Wong / AP / DPA Construction cranes are near an office building of the Evergrande New Housing Development Showroom. The Evergrande share finished trading with a plus of around 17 percent to 2.66 Hong Kong dollars. At times, the papers were even higher than 30 percent.