China Evergrande announces resumption of trading next Monday, with trading suspended for more than 17 months on the Hong Kong Stock Exchange | Resumption | Evergrande
On the evening of August 25th, China Evergrande announced that it had fulfilled all resumption guidelines and applied to the Hong Kong Stock Exchange to resume trading of company shares from 9:00 am on August 28th.
With less than 30 days left until the deadline for delisting, China Evergrande finally received good news and announced a resumption date. Previously, China Evergrande suspended trading from March 21, 2022. According to relevant regulations, if a listed company continues to suspend trading for 18 months, the Hong Kong Stock Exchange has the right to delist its shares. Up to now, China Evergrande has suspended trading for more than 17 months.
Since the beginning of this year, China Evergrande has been continuously striving to achieve resumption of trading. On July 17th, China Evergrande publicly released its "ledger", continuously releasing performance announcements for 2021 and 2022, as well as interim performance announcements for 2022.
According to the financial report, Evergrande suffered losses exceeding 812 billion yuan and total liabilities exceeding 2.4 trillion yuan in the past two years. Although the total debt amount is astonishing, it cannot be denied that China Evergrande has completed one of the important prerequisites for stock resumption. Afterwards, China Evergrande announced the investigation results and remedial measures regarding the execution of the 13.4 billion yuan pledge guarantee of Evergrande Property.
On August 21st, China Evergrande issued another announcement in response to the additional resumption of trading guidelines requested by the Hong Kong Stock Exchange. On August 30, 2022, China Evergrande received additional guidance from the Hong Kong Stock Exchange for resumption of trading. One of the guidelines included that China Evergrande should conduct an independent internal monitoring review and can resume trading only after proving that the company has established sufficient internal monitoring systems and processes and has fulfilled its responsibilities under the listing rules.
China Evergrande stated that it has established a rectification plan and taken several remedial measures, and its internal monitoring system and processes have been basically improved, which is sufficient to fulfill its responsibilities under the listing rules of the Hong Kong Stock Exchange.
After China Evergrande resumes trading its shares next Monday, all three listed companies in the Evergrande series will resume trading. Whether the company can reverse its decline and resume normal operations after resumption of trading remains to be tested by the market.