BEIJING, Sept 27 — Shares in debt-laden Evergrande’s e-vehicle unit slumped by more than 10 per cent today after the firm scrapped a proposed Shanghai listing, and with the property developer mired in a liquidity crisis.
There are fears any defaults on tens of millions of dollars of interest payments could spark a chaotic implosion of the firm, China’s second-largest developer, with major repercussions for the domestic economy and the rest of the world. In a separate exchange filing late Friday, Evergrande NEV said its parent company’s cash crisis would have a “material adverse impact” on production.
It admitted “there is no guarantee that the Group will be able to meet its financial obligations under the relevant contracts”, as it looks for strategic investors.Evergrande’s travails have spooked global markets and raised fears of a tightening of Chinese consumer confidence, which could quickly seep into everything from home buying to demand for steel as well as the appetite for luxury goods.
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