China Evergrande shares surge after resuming trade in Hong Kong

By Sherry Qin

China Evergrande Group's shares (HK:3333) rose sharply early Tuesday upon resuming trade, following a halt last week after the property developer's chairman was placed under police control.

Shares rose as much as 44% to 0.46 Hong Kong dollars (6 U.S. cents), their biggest intraday rise since Sept.6.

Trading in shares of China Evergrande and various units, including Evergrande Property Services, was halted Thursday, with the company saying that Chinese authorities believe Evergrande Chairman Hui Ka Yan may have committed undisclosed crimes and have subjected him to "mandatory measures" while they investigate.

It said in an exchange filing on Monday that there is no other inside information that needs to be disclosed.

Meanwhile, the troubled developer recently scrapped a restructuring plan designed to ensure its survival due to worse-than-expected property sales.

The company's shares have been highly volatile. They surged a record 83% on Sept. 6 after a media report that Beijing may roll out new measures to shore up the property sector. The shares then fell 19% on Sept. 25 after the company canceled its debt-restructuring plan.

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10-02-23 2312ET

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