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

Shares of embattled Chinese property giantEvergranderose Tuesday after itresumed trading in Hong Kong.

The stock rose 20.31% after briefly touching 46 Hong Kong cents shortly after the open.Shares have been volatilesince resuming trade in late August following a17-month suspension.

Evergrande’s EV unit alsohalted tradingTuesday، 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 thedeveloper’s defaultin late 2021.

Just last week، the Chinese property firm announced that its director and executive chairman isunder scrutinyover suspected crimes. Hui Ka Yan was “subject to mandatory measures in accordance with the law due to suspicion of illegal crimes،” EvergrandestatedThursday.

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، whichsaw a 3% fallduring trading hours، weighed down by other real estate stocks.

Other Hong Kong listed property stocks were firmly in the red.Country Garden Holdingsplunged 7.67%، whileLongfor Group Holdingslost 4.82%.New World Developmentshed 6.69%، and Henderson Land Development traded 6.15% lower. China’s property market has faced faltering consumer confidence، withEvergrandeand Country Garden steeped in debt problems.