EGRN - Why China Evergrande Stock Dropped but Its EV Stock Popped
Shares of Chinese companies named "Evergrande" are having a topsy-turvy day today. On the one hand, China Evergrande Group (OTC: EGRN.F) , the real estate giant that's been making headlines over the past year, was down 10% by 10:15 a.m. EDT on Thursday. On the other hand, shares of China Evergrande New Energy Vehicle Group (OTC: EVGR.F) were soaring, up 55.5%!
Image source: Getty Images.
Basically, these two stock shifts are two sides of the same coin. On the one hand, China Evergrande proper is plummeting on reports that the Chinese government has instructed local governments "to prepare for the potential downfall of China Evergrande Group," as The Wall Street Journal put it today.
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Why China Evergrande Stock Dropped, but Its EV Stock Popped