"Aiyaa, come down again. You have a hard heart "
Shares of China Evergrande Group fell 4.8% on Monday morning after its chairman reduced its shareholding to cover a cash shortage to raise about $ 344 million.
The group’s electric car unit, China Evergrande New Energy Vehicle Group Ltd, also plunged down 5% after the firm was still exploring ways to raise capital into the unit with different investors.
Evergrande is still in the process of raising capital as it is still struggling with more than $ 300 billion and the Chinese government has told its chairman, Hui Ka Yan, to use his personal wealth to help pay off outstanding debts.
Following records, Evergrande had failed to pay a coupon totaling $ 82.5 million on Nov. 6 and investors are focused on seeing if it can meet its obligations before the 30 -day grace period that expires on Dec. 6.
According to sources, Hui had sold 1.2 billion shares of its holding company estimated to be worth HK $ 2.23 each on Friday which has seen its holdings decline from 67.9% to 77%.
Evergrande’s problems have plagued China’s real estate sector with a string of debt defaults and downgraded credit ratings of its counterparts in recent months.
Meanwhile, Fantasia Holdings suspended trading of its company's shares on Monday while waiting for information to be released. On Thursday, the developer said a liquidation petition had been filed against the unit in connection with the overdue loan.
