In the midst of debt crisis, China Evergrande Group suspends shares in Hong Kong

Evergrande, China's second-largest property developer, said on Monday that its Hong Kong stock will be suspended. Despite the fact that the property developer gave no justification for the trading suspension, it is now widely regarded as a move in the midst of the company's massive debt issue.

Last Monday, Evergrande Group paid a past-due bond payment. The property developer's battle to decrease its debt of 2 trillion yuan ($310 billion) in order to comply with tighter official borrowing restrictions has sparked fears that a default may spark a financial crisis. Evergrande transferred $83.5 million to cover a bond payment due on September 23.

Evergrande's shares has dropped nearly 90% since July 2020. Because housing activity contributes for 29 percent of GDP, the real estate bust will be disastrous for China's economy.

Evergrande Group was designated as a restricted default by Fitch Ratings in December, suggesting that the business is just a notch above a full default, which would entail bankruptcy and a winding-up procedure.

According to a CNN article, Evergrande has around 200,000 employees, generated more than $110 billion in revenue in 2020, and owns more than 1,300 complexes in more than 280 locations.