China Evergrande Group’s property management firm plunged by a record as stock trading resumed for the first time since March 2022, after meeting regulatory requirements by releasing delayed earnings results.
Evergrande Property Services Group Ltd. fell as much as 37% in Hong Kong in early Thursday trading. The company said in an exchange filing Wednesday that it has published all outstanding financial results required under listing rules, and has addressed any audit modifications.
The unit of China’s most indebted developer reported in June a net income of 1.42 billion yuan ($200 million) for 2022, versus a net loss of 316.3 million yuan in the previous year.
The selloff came after its sister firm, Evergrande Group’s new energy vehicle unit, also tumbled when it resumed its own share trading last week for the same reason. Ending the trading halt for the property management arm would help creditors gauge the merits of its defaulted parent’s proposal to swap debt for equity in the unit as part of a restructuring.
Evergrande Services Unit Posts $200 Million Profit for 2022 (1)
Evergrande Property Services last traded at HK$2.30 apiece before trading was suspended from March 21, 2022.
--With assistance from Alice Huang.
(Updates with market open level)
