China property giant suspends shares on Hong Kong Stock Exchange

Crisis-hit Chinese property developer Country Garden has suspended trade in its shares on the Hong Kong Stock Exchange after delaying the publication of its annual financial results.


The firm said last week that it needed more time to collect information as it restructures its debts.


It defaulted on its overseas debt last year and faces a winding-up petition.


In January, rival real estate giant China Evergrande was ordered to liquidate by a Hong Kong court.


Country Garden said, “due to the continuous volatility of the industry, the operating environment the Group confronting is becoming increasingly complex”, when it announced its earnings report would be delayed.


The first hearing for Country Garden’s winding-up petition, which was filed by Ever Credit Ltd, is scheduled for 17th May.


Ever Credit is a unit of Kingboard Holdings, a laminates maker and property investor.


The suspension of Country Garden’s shares came as the Hong Kong stock market reopened after the Easter weekend.


Also on Tuesday, shares in Chinese state-backed property developer China Vanke fell to a record low.


On Friday, the firm reported a fall of more than 50% in its annual profit and told investors that it aimed to boost its cash flow by slashing debt over the next two years.

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