Fresh turmoil has hit the beleaguered Chinese property sector, with trading again suspended in shares of the huge real estate company Evergrande.
Confidence in the company has hit rock bottom as it has tried to grapple for survival, weighed down by its mountain of debt it has been trying to reach a deal with creditors, but attempts to restructure its debts have hit the buffers due to official investigations into other workings of the vast company.
Attempts by authorities to breathe new life into the crisis-hit property sector haven’t failed to revive its fortunes.
With the chairman now reported to be under police surveillance, and with no viable solutions in sight for its multitude of problems, liquidation looks increasingly likely.
Given the size of the company, if all its operations are halted and a fire sale of its assets takes place, stopping contagion spreading into other sectors would prove highly difficult.