3 stocks of Evergrande that have been suspended for 3 months, when will they resume trading?
Check out the latest news.
It has been three months since the Evergrande Department was suspended from trading on March 21, and the date of the announcement of the reorganization plan between Evergrande and the previously agreed is getting closer.
On the evening of June 20, China Evergrande, Evergrande Property and Evergrande Automobile all issued announcements related to resumption of trading.
China Evergrande stated that the company is actively promoting the reorganization work. As announced by the company on January 26, 2022, the company expects to announce the preliminary reorganization plan before the end of July.
The announcement stated that the independent investigation of the pledge and guarantee of Evergrande Property is actively in progress, and the expected time for the completion of the independent investigation has not yet been determined at this stage.
The audit work of the Group is being carried out in an orderly manner. Due to the impact of the epidemic and the independent investigation of Evergrande's property pledge guarantee, the company has not yet determined the release time of the 2021 annual results.
At the same time, Evergrande also received the resumption guidelines from the Hong Kong Stock Exchange. According to the resumption guidelines, Evergrande needs to break through four major barriers, including publishing financial results as required, resolving any audit reservations, and announcing Evergrande Property 13.4 billion There are four major hurdles, including the results of the investigation that the pledge guarantee was enforced by the bank.
Evergrande's resumption of trading requires four hurdles
China Evergrande, which has been suspended for nearly 3 months, announced that on June 15, 2022, it received the resumption guidelines issued by the Hong Kong Stock Exchange.
Specifically, for China Evergrande and Evergrande Properties to resume trading, they need to meet the following four requirements:
1. Announce all unannounced financial results required by the Listing Rules and resolve any matters with audit qualifications;
2. Conduct an independent investigation into the company's main subsidiary, Evergrande Property's 13.4 billion yuan pledge and guarantee enforced by relevant banks, publish the investigation results and take appropriate remedial measures;
3. Prove that the company complies with Rule 13.24 of the Listing Rules;
4. Inform the market of all important information so that the company's shareholders and other investors can evaluate the company's situation.
And Evergrande Motor needs to meet the above three requirements 1, 3 and 4.
The HKEx requires that before the company's securities are allowed to resume trading, it must resolve the issues that led to its suspension of trading and fully comply with the listing rules to the satisfaction of the HKEx. For this purpose, Evergrande has a basic responsibility to formulate an action plan for resumption of trading.
The Hong Kong Stock Exchange stated that if the company's situation changes, it may change or supplement the resumption guidelines.
At the same time, according to relevant rules, HKEx has the right to delist any listed company that has been suspended from trading for 18 consecutive months. In the case of Evergrande, the 18-month period will expire on September 20, 2023. If the matters leading to the suspension of trading and the To meet the requirements of the resumption guidelines and to resume share trading before September 20, 2023, the Hong Kong Stock Exchange will recommend that the Listing Committee start the procedure to cancel the listing status of Evergrande.
A preliminary restructuring plan is expected to be announced by the end of July
The Hong Kong Stock Exchange has issued a series of guidelines for resumption of trading, so how is Evergrande prepared for related work?
China Evergrande said that for the restructuring plan, the company is actively promoting the restructuring work. As previously announced on January 26, 2022, it is expected to announce the preliminary restructuring plan before the end of July this year.
The independent investigation of Evergrande's property pledge guarantee is currently in active progress, and the expected time to complete the independent investigation has not yet been determined at this stage.
As for the related performance of Evergrande in 2021, China Evergrande stated that the audit of the annual report is currently being carried out in an orderly manner, but due to the impact of the epidemic and the independent investigation of Evergrande's property pledge guarantee, China Evergrande has not yet been able to determine its 2021 annual performance. time of publication.
Looking back at the past, on March 21 this year, China Evergrande, Evergrande Property and Evergrande Automobile were all temporarily suspended.
The reason for the follow-up suspension was revealed. The main reason is that Evergrande Property, an important subsidiary of China Evergrande, found that there were about 13.4 billion yuan of deposits in the audit of its 2021 financial report.
China Evergrande believes that this is a major event and Evergrande Property is an important subsidiary, and an independent investigation committee will be established to follow up the impact of the matter on the company.
At the same time, due to the significant changes in Evergrande's operating conditions since the second half of last year, the auditors added a large number of additional audit procedures this year. Coupled with the related impact of the new crown epidemic, the audit procedures could not be completed on time. Therefore, all three companies will be delayed. Publish the 2021 Annual Report.
It is worth mentioning that in October 2021, PricewaterhouseCoopers, one of the world's leading "Big Four" accounting firms (namely PricewaterhouseCoopers, Hong Kong calls PricewaterhouseCoopers PricewaterhouseCoopers) , was investigated by the Hong Kong Financial Reporting Council because of problems in the 2020 annual account audit report issued to China Evergrande. As of now, the results have not been announced.
(Broker China)