Embattled Chinese property firm Evergrande up 20% after trading resumes in Hong Kong

Shares of embattled Chinese property giant Evergrande rose Tuesday after it resumed trading in Hong Kong.

The stock rose 20.31% after briefly touching 46 Hong Kong cents shortly after the open. Shares have been volatile since resuming trade in late August following a 17-month suspension.

Evergrande’s EV unit also halted trading Tuesday، citing a pending announcement.

Evergrande’s market valuation has been hovering around 5 billion Hong Kong dollars ($639.8 million)، a fraction of its value prior to the developer’s default in late 2021.

Just last week، the Chinese property firm announced that its director and executive chairman is under scrutiny over suspected crimes. Hui Ka Yan was “subject to mandatory measures in accordance with the law due to suspicion of illegal crimes،” Evergrande stated Thursday.

Faltering consumer confidence

“The Board is of the view that there is currently no other inside information in relation to the Company that needs to be disclosed،” the company said in a more recent statement late Monday.

Evergrande’s rebound contrasts against the wider Hang Seng Index، which saw a 3% fall during trading hours، weighed down by other real estate stocks.

Other Hong Kong listed property stocks were firmly in the red. Country Garden Holdings plunged 7.67%، while Longfor Group Holdings lost 4.82%. New World Development shed 6.69%، and Henderson Land Development traded 6.15% lower. China’s property market has faced faltering consumer confidence، with Evergrande and Country Garden steeped in debt problems.