Stocks related to the real estate sector showed some actions on Monday, however, these actions have been seen outside India, said Anil Singhvi, Managing Editor at Zee Business.

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He said the news that shares of distressed developer China Evergrande and its profitable property management unit were suspended from trade in Hong Kong on Monday and speculation about a possible asset divestment at the cash-strapped company resulted in this action.

 

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Speaking on the topic Kushal Gupta, Senior Research Analyst at Zee Business said that Evergrande had to pay interest payment on September 23 and September 29 which the company has not yet paid. The offshore bond holders have informed about the same.

The analyst said that in todays development the Hong Kong Stock Market suspended the trading of Evergrande and its profitable property management unit however, the reason behind the same was not clear in the morning.

 

But as the day passed clarification regarding the matter came. Hopson Development Holding Co, another real eastate company from China is planning to acquire about 51 percent of the indebted Evergrande group's property management unit, as per the reports, said the analyst.

He said that Evergrande has a liability of more than 300 Crore Dollars and the company is raising cash for this and the most profitable and easy asset which is coming in its monetization list is Evergrande Property Development Unit.

He also informed that the shares of Hopson Deveopment was also suspended from trading on the Hong Kong Stock Exchange on Monday. The analyst added that an announcemnet related to a big deal is expected.