Shares rise in China’s Evergrande, thanks to electric car hopes – Business Live | a job

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Shares in China’s Evergrande Real Estate rose Monday morning after the company’s embattled chairman indicated that in the future the company will focus on its growing electric vehicle unit rather than its troubled core real estate business.

The company, which has about $305 billion in debt, weathered a costly default last week, finding money for a last-minute bond interest payment.

Shares in Evergrande are up as much as 6% so far during Monday’s trading, while shares in the electric vehicle unit – China Evergrande New Vehicle Energy Group – jumped 17% at some point after the Evergrande chairman said it would make the new car project. Its main business, although both companies later lost some of their gains and Evergrande stock is currently flat.

According to state media, Hui Ka Yan said on Friday that electric vehicles will overtake the company’s previous real estate focus within the next decade, a strategy that appeared to be popular with investors.

Bloomberg Asia

Shares of China’s electric car unit Evergrande jumped after the head of the debt-laden real estate giant said manufacturing such cars would become its main business within a decade https://t.co/OIHN0D3l49

October 25 2021

Evergrande was founded in the automotive business in 2019 but has yet to show any of its planned models or sell a single vehicle.

Evergrande, China’s second-largest real estate developer, alarmed global financial markets in September, when it announced it might not be able to pay many of its creditors, ranging from homebuyers, building contractors, banks and foreign investors.

On Friday, it was reported that the company transferred an $83.5 million bond interest payment that it didn’t miss in September.

Reuters

Some Evergrande bondholders received a coupon payment for the September 23 tranche https://t.co/CjjTk3SUgR pic.twitter.com/3RSdvR4Q9C

October 25 2021

On Sunday, Evergrande said it had resumed work on 10 projects in six cities, including Shenzhen. Some construction was halted during the summer due to late payments to suppliers and contractors.

Jonathan Cheng (@JChengWSJ)

Good news, homebuyers. Evergrande says it is resuming construction on more than 10 real estate projects after it barely made a US dollar bond payment last week. It also says it will also finish the huge football stadium in Guangzhou.

October 25 2021

However, concerns in Evergrande have not completely disappeared, although Chinese state media reported on Monday that any fallout from the country’s property debt to the financial industry could be brought under control.

In a Xinhua News Agency commentary on China’s economy, including information attributed to “relevant departments” and “reliable people”, it was reported that real estate companies face the possibility of defaulting on their debts due to poor management and failure to adapt to market changes.

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9 a.m. GMT: German IFO Business Climate Index for October 2 p.m. GMT: Bank of England Monetary Policy Committee member Tenryu delivers a speech at the Center for Economic Policy Research conference on International Trade, Global Supply Chains and Monetary Policy at 10 p.m. GMT: Released Facebook third quarter results
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