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Evergrande's stock was suspended last Thursday after a report
that its chairman and founder, Hui Ka Yan, had been placed under
police surveillance. The world's most indebted developer later
said in a statement that Hui was being investigated.
"There is currently no other inside information in relation to
the company that needs to be disclosed," Evergrande said in a
statement late on Monday.
The stock was last trading up 15.6% at HK$0.37, having lost
around three-quarters of its value since August.
"The trading resumption may have fuelled speculation that there
may be progress in restructuring," said Linus Yip, chief
strategist at First Shanghai Securities.
The once top-selling Chinese developer has been embroiled in a
debt crisis that reached a turning point when it defaulted on
its offshore debt obligations in late 2021, sending jitters
through global markets amid fears of contagion.
The crisis deepened last week when it said its main unit in
China was unable to issue new debt due to an ongoing
investigation, further complicating the developer's
restructuring plan.
The clock is ticking for Evergrande to get creditors' approval
for restructuring its offshore debt.
Reuters reported last Tuesday that a major Evergrande offshore
creditor group was planning to join a liquidation court petition
filed against the developer if it does not submit a new debt
revamp plan by the end of October.
With the latest setbacks, some analysts say the debt
restructuring plan now looks set to falter and that the risks of
the company being liquidated are increasing.
The developer is scheduled to have a hearing on a winding up
petition on October 30.
(Reporting By Donny Kwok; Writing by Anne Marie Roantree;
Editing by Muralikumar Anantharaman and Lincoln Feast.)
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