China Evergrande Group has applied for trading of its shares to resume on Tuesday, according to a filing to the Hong Kong stock exchange.
Evergrande has struggled to restructure US$20 billion of its offshore debt and claims just as the process entered its final leg last quarter.
Evergrande’s shares will be “under pressure as investors who hold the stocks may sell it”, said Kenny Wen, KGI’s head of investment strategy based in Hong Kong.
“Given the fundamentals, I do not recommend retail investors trade the stock. There are better choices in Hong Kong’s market.”
“The share price will be under pressure as investors may worry about the uncertainties as [Evergrande’s chairman is] under arrest,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.