By Gina Lee

Investing.com – China Evergrande After a sale of a, shares in Group (HK.:) plunged following its latest setback.

The developer’s Hong Kong shares tumbled 12.88% to HK$2.57 ($0.33) by 11:26 PM ET (3:26 AM GMT), after sliding as much as 14% earlier in the session. Since Oct. 4, trading in these shares has been stopped.

China Evergrande announced Wednesday that it had reached a deal for a sale of a 50% stake. Evergrande Property Services Group Hopson Development Holdings Ltd. was renamed (HK) after Hopson failed to fulfill the requirements to submit a general offering.

Hopson, however, retorted by asserting that China Evergrande has not terminated the sale agreement. Hopson also said it doesn’t accept any “substance whatsoever”. It added that it is looking into other avenues to defend its legitimate interests.

On Thursday, trading in Hopson shares and Evergrande Property Services shares was also resumed.

China Evergrande is currently in the second round of failures. According to Reuters the Hong Kong office sale for $1.7billion collapsed due to buyer worries about China Evergrande’s financial condition.

China Evergrande will have to repay $83.5 million to China Evergrande in coupon payments to secure an offshore bond. The deal with Hopson has collapsed. The company could be placed in default if it fails to make payments.

Although the collapsed deals mean that China Evergrande will have to find another way to pay off its more-than-$300 billion debt, authorities have attempted to calm fears by saying that the company’s debt woes will not spiral out of control and trigger a broader financial crisis.

Modern Land China Co. Ltd. (HK) announced that it no longer seeks investors’ consent to extend the maturity of a $1 bond due Oct. 25. The company’s shares were suspended from trading on Thursday.