World China Evergrande’s shares jump after suspension of trading
Trudeau says western countries need to stand together against China
Trudeau says western countries need to stand together against China , arguing that country's communist leadership has often been "playing" Western countries against each other. © REUTERS/Blair Gable FILE - Canada's Prime Minister Justin Trudeau takes part in a news conference in Ottawa, Ontario, Canada December 13, 2021. "We need to do a better job of working together and standing strong so China can't play the angles and divide us one against the other," Trudeau said in an interview with Global television.
China Evergrande Group shares have jumped as much as 10 percent in resumed trade after the developer said a government order to demolish 39 buildings on the resort island of Hainan would not affect the rest of its project there.
The firm, struggling to repay more than $300bn in liabilities, also said its contracted sales for 2021 had plunged 39 percent from the previous year to 443 billion Chinese yuan ($69.5bn).
Its shares were up 4.4 percent to 1.66 Hong Kong dollars at 05:32 GMT on Tuesday in line with the broader Chinese property sector.
Banks, miners keep ASX in the green
Financials and mining stocks have kept the Australian share market higher at midday.The benchmark S&P/ASX200 index was up just 3.2 points, or 0.04 per cent, to 7513 points at 1200 AEDT on Thursday.
Evergrande’s shares were suspended from trading on Monday and Tuesday morning, pending the release of inside information.
JP Morgan said in a report early this week that most developers had missed their 2021 sales targets, although sales still managed an average growth of 3 percent on-year.
The investment bank expected yearly sales growth to continue to shrink in the first quarter due to a very high base and weak market sentiment.
‘Resolve the issue properly’
Evergrande confirmed late on Monday that on December 30 authorities in Danzhou city, Hainan province had ordered it to demolish 39 buildings at Ocean Flower Island, an enormous integrated resort development where Evergrande has spent 81 billion yuan ($13bn) to build more than 60,000 homes.
It has not disclosed the reason for the demolition order and the Reuters news agency could not reach Hainan provincial authorities for comment.
The order did not involve other plots of land in the project, Evergrande said on Tuesday.
“The company will actively communicate with the authority in accordance with the guidance of the decision letter and resolve the issue properly,” it added in the filing.
On its liquidity status in general, the firm said it would continue to actively maintain communication with creditors.
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