Evergrande falls further pulling more companies down the drain

After weeks of being halted for trading since the last day of September, on Thursday trading in shares of China’s most insolvent property developer, Evergrande, resumed. In retrospect, it was not a great idea.

Evergrande shares slumped as much as 14.2% after the debt-strapped developer sought unsuccessfully to sell a controlling stake in its property management business. The collapse of talks to sell the 50.1% stake in Evergrande Property Services to Hopson Development Holdings for 20.04 billion Hong Kong dollars ($2.58 billion), revealed in an exchange filing late Wednesday evening, ratcheted up the odds that Evergrande will default on an offshore bond this weekend when the 30 day grace period expires on an offshore bond coupon payment that was due a month ago and was never paid.

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