Evergrande shares to remain suspended as liquidators see no path to restructuring

“In the absence of substantial new investment into the company, the liquidators do not currently see a path to a restructuring that would enable the company to satisfy the resumption guidance and a resumption of trading in the shares,” the liquidators said in a filing on Friday to the Hong Kong stock exchange.

The liquidators said they have made “modest realisations of assets” of Evergrande, but pointed out that the company’s “liquidity and other internal resources remain limited” amid its “level of indebtedness and the challenges faced by the group’s business and operations”.

Despite efforts by state and local authorities to support developers and bolster confidence among homebuyers, property prices on the mainland have continued to fall, adding further pressure on the country’s cash-strapped developers.

Data from the National Bureau of Statistics published last month showed that prices of newly built homes declined for the 13th consecutive month in June, down 0.7 per cent month on month, while the cost of lived-in homes dropped 0.9 per cent in the same period.

The property downturn saw land purchases in the first seven months of this year falling 38 per cent year on year to 430.7 billion yuan, according to data published earlier this month by the China Index Academy.