China Evergrande unit shares plunge over 20% after sale talks collapse
Shares in a unit of debt-laden Chinese property giant Evergrande plunged more than 20% after talks to sell the business collapsed. The slump underscores the persistent strains in China's property sector and the difficulty of unwinding the group's vast liabilities.
Shares in a unit of heavily indebted Chinese property developer Evergrande fell more than 20% in trading after negotiations to sell the business broke down.
Evergrande, one of the companies at the centre of China's property crisis, has spent years trying to restructure its debt and dispose of assets. The collapse of the sale talks represents a fresh setback in the group's efforts to reduce its enormous liabilities.
Analysts say strains in China's property sector continue to weigh on the wider economy. Investors are watching the position of other indebted developers and the prospects for further asset sales closely. Beijing's measures to support the sector and stabilise confidence remain in focus as the drawn-out crisis continues to unfold across the market.
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