Chinese real estate giant, Evergrande Group, has reportedly announced the suspension of its shares from trading, without elaborating on the reason behind the decision.
The move comes as Chinese media reported that the embattled property developer has been ordered by authorities to demolish 39 of its buildings in southern Hainan province within ten days, having illegally obtained the building permits.
A Chinese news outlet has reported that the order of demolition is in relation to the Ocean Flower Island project being developed by the Evergrande Group off the coast of Hainan.
An artificial archipelago, the buildings of the project cover 435,000 square meters, according to the report which cited an official notice sent to the Hainan unit of the company.
Another Chinese media firm reported that regulators from Danzhou city of Hainan had stated in November that they will block the company’s plans of giving properties to the contractors and other creditors in order to repay its debts.
Evergrande, which has become the world’s most indebted developer, has to repay over $300 billion in liabilities, including international market bonds, amounting to $20 billion, which were deemed to be in cross-default by various rating firms after the company missed payments last month.
While the company has not addressed it's series of missed payments in the final quarter of 2021, the second-largest property developer in China has set up a risk management committee to actively engage with its creditors.
Evergrande also withdrew its plans of repaying investors in its wealth management products last week, wherein each investor would have received 8,000 yuan ($1,257) per month as the principal payment for 3 months, irrespective of when the investment matured.
Shares of the firm have fallen by 89% from last year, having closed at HK$1.59 ($0.20) on 31st December 2021. Evergrande’s EV unit, China Evergrande New Energy Vehicle Group Ltd.’s shares also shed by 10% during early trading hours on Monday, while its property management service provider, Evergrande Property Services, shed by 2.3%.