After trading was halted for 17 days, Evergrande shares reopened with a dismal performance on Thursday after a deal to sell part of its assets to Hopson Development Holdings failed.
The Chinese real estate giant was previously said to be in talks to sell part of its service units to Hopson, its smaller rival.
However, on Wednesday, Hospson had announced that talks to buy a 50.1% stake in Evergrande Property Services had failed.
Evergrande later confirmed the termination of the deal in a separate filing. The deal is worth 20.04 billion Hong Kong dollars ($ 2.58 billion), according to the report.
Hopson Development is a Chinese real estate company indebted to Evergrande, and some analysts argue that the deal is a way for Evergrande to write off its debt.
However, according to Hopson, Evergrande said the deal was terminated on Oct. 13 and it is now looking at other options available to protect its interests.
Evergrande’s debt crisis has sparked concerns that its potential collapse could cause global markets to be affected as well.
Investors are now worried about the debt the company incurs in excess of $ 300 billion. The company’s total liabilities equate to about 2% of China’s Gross Domestic Product (GDP).
At the time of writing, Evergrande shares are trading around 2.56 HKD after falling more than 12% in today’s trading session in Hong Kong.
