(Markets Insider) Shares of crisis-hit Evergrande fell to 14% in Hong Kong on Thursday as investors abandoned the stock following the collapse of a 50.1% stake sale of its property unit.
Investors grew concerned after Evergrande said it might be unable to meet financial obligations following the lack of progress in selling key assets to boost liquidity.
Concerns also grew after the company’s filing on Wednesday revealed that its home sales fell drastically.
Evergrande was to sell the 50.1% stake in its property services arm to Hopson Development to boost its liquidity, with the deal estimated to be worth $2.6 billion.
Evergrande’s stock is now down more than 85% over the last year. Its debt is more than $300 billion, with default risks raising fears across the global economy.
3333: HKG is down -12.54%.
