HONG KONG (Reuters) – Shares of Evergrande Property Services Group shed nearly 50% on Thursday when trading resumed after 16 months, following the release of its financial results and the end of an investigation into misused funds involving its parent.
The property services firm was dragged into financial troubles after its parent, China Evergrande Group, the world’s most indebted property developer, became embroiled in a debt crisis in mid-2021 that later spread across the sector.
Shares of Evergrande Services had been suspended since March 21, 2022. Its sister company, China Evergrande New Energy Vehicle Group, resumed trading last week after a 16-month halt, sinking as much as 69% on the first day of trade. The parent’s shares, however, remain suspended.
Evergrande Services said on Wednesday it had sufficient assets for its business operations and expected to maintain a level of revenue and net profit growth comparable to that of property service industry leaders.
(Reporting by Clare Jim; Editing by Himani Sarkar and Jamie Freed)
