Shares of the problem Chinese developer Evergrande jumped at the auction on the Hong Kong Stock Exchange. According to Reuters, securities of electric vehicles departments went to growth, since the company burdened by debts reported that he intends to make it its main business.
During trading on Monday, October 25, Evergrande shares rose 6 percent, China Evergrande New Energy Vehicle Group Ltd – by 17 percent. However, later during the Evergrande paper session, I lost the advantage and fell by 0.7 percent, the shares of the electric vehicle unit rose by 9.5 percent.
Earlier in October, it became known that the company would start producing electric cars of the brand Hengchi in 2022. The production site is located in the Chinese port city of Tianjin. The local government stated that it would coordinate actions with financial institutions to support Evergrande and help companies achieve mass production. Already by 2025, Evergrande plans to produce and sell one million electrocarbers per year. Later, the chairman of Hui Ka Yan announced that the production of electrocars will become the company’s main business.
Also, the growth of the shares also affected the news on the resumption of construction of more than 10 objects. Building dismissed in six cities of the country, including Shenzhen, Dongguan, Jiangmen, Shanwei, Zhuhai and Zhongshan. One of the largest developers of China Evergrande is on the verge of default. His total debt is 305 billion dollars.