EGRN - Why China Evergrande Group Rocketed More Than 60% Higher Today
Shares of massive Chinese property developer China Evergrande Group (OTC: EGRN.F) had rocketed 61% higher as of 1:30 p.m. ET Monday.
The saga of Evergrande's blowup and potential bankruptcy has been going on since last summer, when Chinese authorities were making efforts to tighten up loose credit and rein in the speculators driving that country's property bubble. With over $300 billion in liabilities, Evergrande defaulted on its loans back in December, and trading of its shares in China was suspended. Since then, government authorities and relevant parties have been working on a restructuring.
Then late last week, Evergrande's CEO and CFO resigned at the request of the company's board after an investigation revealed the misappropriation of funds in a subsidiary. Shawn Siu, the chair of Evergrande's electric car subsidiary -- yes, Evergrande had for some reason expanded into building electric cars -- has taken over as CEO.
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Why China Evergrande Group Rocketed More Than 60% Higher Today