Bad headlines swamp Evergrande

摘要

CHINA EVERGRANDE CROUP was in focus again last week, with a barrage of negative news exacerbating market worries over the heavily indebted developer's finances and sending its shares and bonds sharply lower.The bad news started trickling out over the weekend, with local media reports that a court in Jiangsu province had ordered the freezing of a Rmbl32m (US$20m) bank deposit held by one of Evergrande's onshore units at the request of China Guangfa Bank's Yixing sub-branch.In response, Evergrande's shares closed down 16.2% at HK$8.21 on Monday and its US dollar bonds dropped 1.5-2.5 points.Evergrande on Monday said the loan was not due until March 27 2022 and threatened to take legal action against Guangfa. But in another statement on Thursday, it said the dispute had been resolved and it would continue to cooperate with Guangfa, without giving further details.