Evergrande shares resumed their descent in trading overnight in Asia, having already shed 80% when they returned from suspension on Monday.
A further 13% was wiped off the shares last night, bucking good gains elsewhere, as the debt-laden property group delayed a creditors’ meeting to vote on a financial restructuring for another month.
It now means that the Chinese property investor, which owes a reported US$328 billion, has shed around 99% of its value.
Prior to Monday’s trading resumption, the shares had suspended for around 17 months.
Losses in the financial years 2021 and 2022 amounted to US$81 billion with a further loss of US$4.5 billion reported at the weekend for the first six months of 2023.
A slowing in China’s economy and delays in getting projects completed have compounded the problems, which crystallised with a debt default in 2021.
Two weeks ago the company filed for Chapter 15 bankruptcy in the US to protect it from creditors there.
Evergrande’s woes are part of a widening property crisis engulfing China and that prompted the government to introduce a new package of measures to bolster the sector and stock market.
Authorities have halved stock trading stamp duty, loosened margin loan rules, put the brakes on new listings and approved new retail funds in attempts to support the faltering economy.