If there are those days when it's better to stay in bed, today was one of them. Evergrande Auto shareholders had a memorable Monday. The previously badly shaken share was listed with an unprecedented price loss. Investors, it seems, are beginning to lose confidence in a quick solution to the Evergrande Group's crisis.
Most valuable automaker in China 4 months ago
Evergrande Auto was still US $ 87 billion as of April Wert, and thus more than GM or Ford. That was just 4 months ago, countless billions of market values have been destroyed since then. There is not much left of the ambitious national hope that Evergrande Auto was back then. Only hope for better times, and even that seems to be fading. Because gradually it seems clear, should the wind not turn unexpectedly, that Beijing neither wants to catch nor cushion the fall of Evergrande.
Evergrande Auto shares (HK 0708) fell 26,86% today and ended trading at HKD 7,68 (Hong Kong dollars). This means that for the first time in a year the share is trading below the value of one €. There are reasons for the price loss, and it is worth paying attention to the marginal details. The way the game is played. At least not clean.
Release time: 2021.08.20
针对 近日 网 传 “中国 恒大 集团 正在 与 小米 集团 洽谈 出售 恒大 汽车 65% 股份” 一事 ， 我 司 特此 声明 如下 ：
恒大 汽车 在 战略 股东 引进 过程 中 ， 曾 与 小米 集团 有 过 初步 交流 ， ， 并未 深入 洽谈 推进。(Source: Evergrande 20.08.2021/XNUMX/XNUMX)
Conversations with Xiaomi only exchange
In a statement dated August 20 (see above) the Evergrande Group put the negotiations with Xiaomi into perspective. The talks about the sale of the 65% stake are only a preliminary exchange and not in-depth talks. Previously, the company had suggests, the negotiations are more intensive and advanced. The message went (and continues to go) around the world and achieved its purpose. Prices stabilized for a moment.
However, the correction was not voluntary. Also on August 20, the National Bank and the regulatory authorities instructed Evergrande to refrain from providing incorrect information about the future development of the group.
Of course, it's generally worth paying attention to marginal details. Then the shareholders would have noticed that Dr. Xia Haijun, "Vice President“From Evergrande Auto, as of August 17, 3 million shares in the company sold. At that point they were worth HKD 14,17. Almost double today's rate.
The parent company itself tries to create liquidity wherever possible. Currently there is a sale of the headquarters in Hong Kong negotiated. It could be worth up to $ 1.6 billion. A tear in a sea of $ 300 billion in debt.
With images from Yicai Global