(Reuters) Chinese property developer Evergrande Group extended losses by a further 10.2% on Monday to claim an 11-year low of HK$2.28 as fears grow over loan defaults.
The fall in Evergrande shares happens as its executives try to rearrange loan repayments amid looming payment deadlines this week.
Chinese regulators have warned that Evergrande’s $305 billion liabilities could pose risks to the financial system if left unchecked.
Analysts expect Evergrande’s stock to continue falling until a sustainable solution is found to address its liquidity stress. The share is projected to extend weaknesses to as below HK$1.
Evergrande’s lenders are planning to give it more time to repay loans, with one of the lenders allowing a loss provision on its debt to the company.
Evergrande said it has started repaying investors in its wealth management products.
Chinese policymakers are asking Evergrande to prolong interest repayments or rollover loans. Analysts do not expect a direct bailout from the Chinese government.
Evergrande is expected to pay $83.5 million interest on September 23 and another $47.5 million on September 29.
3333: HKG is down -10.24%.
