By Gina Lee

Investing.com – Trading in shares of China Evergrande Following claims by bondholders that Group had failed to pay a second crucial bond interest payment during the week, the shares of Group in Hong Kong (HK) were traded on Monday.

Shares Evergrande Property Services Group The Hong Kong Stock Exchange reported that (HK) a China Evergrande company was also temporarily suspended the day before. There was no explanation for the suspensions and it wasn’t clear who initiated them.

China Evergrande’s shares plunged by 80%, and Evergrande Property Services Group shares fell 43% in 2021 as Evergrande struggles to find funds to pay suppliers and creditors.

Although the People’s Bank of China eased some initial worries after it owed to protect homebuyers’ interests, the Hong Kong suspension re-ignited concerns in the market. By 12:09 PM ET (4:09 GMT), the index was slightly lower. It had fallen to 2.49%.

The company has already missed two offshore payments since September and there are increasing concerns about its ability to pay the $162.38m in dollar coupon payments due October 2021.

China Evergrande announced on Sep. 30 its wealth management unit made 10% of the due wealth management products. It has been prioritizing local creditors above offshore bondholders.

The Chinese government also reportedly tapped state-owned firms and state-backed property developers, both directly or indirectly about purchasing some of China Evergrande’s assets, according to Reuters.