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Evergrande shares plummet after developer says it is not able to issue new debt

September 25, 2023

Shares in Evergrande (HK:3333) shed more than a fifth of their value on Monday after the embattled Chinese property developer announced that it would be unable to issue new debt.

Evergrande ‘s stock slumped by 21.8%, its largest one-day percentage decline since late last month, while the Hang Seng Mainland Properties Index slid by 4.2%.

In a stock exchange filing in Hong Kong on Sunday, the company said it does not currently meet the “qualifications for the issuance of new notes” because one of its major subsidaries, Hengda Real Estate, is currently being investigated.