Produced｜Sohu Finance
Author｜Wu Ya
On June 15, the first trading day after the Dragon Boat Festival holiday, China Evergrande (HK:03333) opened a high of 11.34 Hong Kong dollars per share, up 1.06%; since then, China Evergrande’s stock price has fallen all the way, with a minimum of 10.98 Hong Kong dollars per share. The decline amounted to 2.14%, and the total market value was about 145.4 billion yuan. As of press time, China Evergrande reported 10.94 Hong Kong dollars per share, down 2.5%.
Prior to June 11, China Evergrande purchased approximately 2.69 million shares of its own at a price of 11.14 to 11.38 Hong Kong dollars per share, valued at 30.2 million Hong Kong dollars.
Since June 7, 2021, to June 11, China Evergrande has spent approximately HK$529 million to repurchase approximately 46.1 million shares in just five days.
Among them, China Evergrande had spent HK$336 million to repurchase 29.084 million shares on June 7, at a repurchase price of HK$11.08-11.84 per share. On June 9, China Evergrande announced that it will be released on June 9, 2021. 12.2 million shares were repurchased on a daily basis but not yet cancelled. The issued shares accounted for 0.0921% of the existing issued shares before the issuance of the relevant shares. The price per share was HK$11.20-11.60, and the total amount paid was HK$139 million.
In addition, on June 10, Evergrande repurchased 2.111 million shares for a total of 23,699,600 Hong Kong dollars.
Stock price information shows that since March this year, China Evergrande’s stock price has declined overall, from a high of 15.7 Hong Kong dollars per share on March 30 to 11.22 Hong Kong dollars per share on June 11 (the closing price of the last trading day before the Dragon Boat Festival holiday). Shares, fell 28.53%, and the total market value shrank by more than 48.9 billion yuan.
Since May, China Evergrande has repeatedly been caught in turmoil. On June 7, China Evergrande issued a statement, and responded positively to various rumors about the sale of houses at discounted prices, Evergrande’s operating conditions, and capital chain.
China Evergrande stated that the company’s production and operation are all normal, and malicious rumors will be held accountable in accordance with the law.
It said that the annual “May 31 House Buying Festival” was held recently, and the staged extra-large preferential measures introduced are limited to products such as large units, bottom and top floors, shops and other products that have a single-building sales rate of more than 95%. No adjustments have been made to the selling prices, discounts and payment methods of all conventional products.
In view of the fact that a very small number of commercial bills were not redeemed in time by individual project companies, it expressed great importance and arranged for redemption. In addition, regarding the financial business carried out with Shengjing Bank, Evergrande Group stated that they are in compliance with relevant national laws and regulations.
It also emphasized that “the company’s production and operation are all normal, and there has been no case of late payment of loan interest or overdue return of principal in the past 25 years since its establishment.”
In addition, Xu Jiayin, Chairman of the Board of Directors of Evergrande Group, revealed at the Evergrande Group’s annual strategic partner exchange meeting on June 3 that by the end of this month, Evergrande’s interest-bearing liabilities are expected to drop from last year’s highest of 874.3 billion yuan to Below 600 billion yuan, at least one of the three red lines will turn green.
However, on the evening of June 9, China Chengxin International stated that it maintained the subject credit rating of Evergrande Real Estate Group Co., Ltd. as AAA, and maintained “15 Evergrande 03”, “19 Evergrande 01”, “19 Evergrande 02”, and “Hengda 02”. “20Hengda 01”, “20 Hengda 02”, “20 Hengda 03”, “20 Hengda 04”, “20 Hengda 05” and “21 Hengda 01” debt credit rating is AAA, but they will The entity of Evergrande Real Estate Group Co., Ltd. and the credit ratings of the aforementioned debts are included in the credit rating watch list.
China Chengxin International stated that it will continue to pay attention to the implementation progress and effects of Evergrande Group and Evergrande Real Estate’s debt reduction strategy, as well as the negative impact on the company’s operations and debt repayment that a very small amount of commercial bills are not paid in time. And timely assess the impact of the above matters on the company’s credit status.
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