Trading of Evergrande shares halted in Hong Kong exchange pending announcement about takeovers, mergers
Major stock markets in Asia were mixed on Monday as developments at troubled Chinese real estate developer Evergrande continues to unfold.
The Asia Dow, which includes blue-chip companies in the region, was down 28 points, or 0.74%, to 3,789 at 0936 GMT. Tokyo’s Nikkei 225 decreased 326 points, or 1.1%, to 28,444.
The Hang Seng, the benchmark for blue-chip stocks trading on the Hong Kong stock exchange, was the worst performer of the day by plummeting 539 points, or 2.2%, to 24,036.
Singapore index, on the other hand, increased 38 points, or 1.3%, to 3,089, and the Indian Sensex benchmark gained 533, or 0.9%, to 59,298.
China’s Shanghai index increased 31, or 0.9%, to 3,568 points.
Evergrande Group, which has $300 billion in liabilities that could default on its debt and cause millions of customers to lose deposits, has a $260 million offshore note maturing later Monday that has only a five-day grace period.
The failure of payment would increase uncertainty amid the group’s liabilities,and raise risks surrounding property markets in China and Asia overall.
At the request of the company, trading of Evergrande shares were halted in the Hong Kong stock exchange, “pending the release by the company of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers, which constitutes an inside information and a possible general offer for the shares of the company.”
Rising oil prices, in addition, create worries that economic recovery from the coronavirus pandemic would be prolonged.
Amid such risks, European stock exchanges were down on Monday except for London.
The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was down 0.1 point, or 0.02%, to 452.80 at 0954 GMT.
Germany’s DAX 30 index was off 19, or 0.12%, to 15,137 and the French CAC 40 slightly decreased by 5 points, or 0.07%, to 6,512.
Italy’s FTSE MIB dove 64, or 0.25%, to 25,550 points, while Spain’s IBEX 35 was flat at 8,800.
London’s FTSE 100 was the only gainer of the day at the time by adding 8 points, or 0.12%, to 7,036.
The Organization of the Petroleum Exporting Countries (OPEC) will hold its ministerial meeting on Monday. The oil market expects the group known as OPEC+, which includes major producer Russia as well, to discuss increasing oil production in order to meet surging global demand.