Chinese developer Evergrande said that Hong Kong’s stock exchange has set the terms for it to avoid delisting, as turmoil in the country’s property sector pushed a gauge of Asian high-yield dollar debt to near-record lows.
The slump for the ICE Bank of America Asian Dollar High Yield index was spurred largely by global investors dumping Chinese developers’ bonds in response to mounting repayment pressures. Last week, Moody’s put the credit rating of Chinese conglomerate Fosun International on review for downgrade.
Evergrande, the world’s most indebted developer, said in an exchange filing on Tuesday that it had until September 20, 2023 to resume trading in its shares. The developer will need to meet a series of conditions including publishing an independent investigation into its property services unit and demonstrating it has sufficient assets to operate.