China Evergrande’s crucial bond payment triggers its stocks soaring
According to the Stock Exchange of Hong Kong, property developer China Evergrande’s shares soared by 16% to $0.38.
A share of China Evergrande has risen to HK$2.94 ($0.38) this month. Later it fell slightly to HK$2.78 ($0.36). Stocks of the troubled developer began to increase after the threat of a default related to the payment of the bonds debt was eliminated.
Notably, the volume of China Evergrande’s debt on three bonds of clearing company Clearstream totaled $ 148 million. Consequently, the Chinese developer has managed to clear the debt, avoiding default.
Previously, China Evergrande was on the verge of bankruptcy. The company management settled its debt shortly before the end of the 30-day grace period on October 29, 2021. By that deadline, China Evergrande had paid $45 million to bondholders.
Last month, shares of China Evergrande's electric car division gained 17%. The value of the stocks surged after the management's statements about the priority areas of business, in particular the production of electric cars. The company plans to launch its first electric car next year.