China Evergrande Falls Over 5% After It Says Targeting Restructuring Proposal Within 6 Months

China Evergrande Falls Over 5% After It Says Targeting Restructuring Proposal Within 6 Months

HONG KONG (Reuters) – Shares of China Evergrande Group fell 5.7% to HK$1.67, lowest since Jan. 19, after the debt-laden developer said it targets to have a restructuring proposal within six months.

That compared to a 2% drop in the benchmark Hang Seng Index and a 3.4% decline in the Hang Seng Mainland Properties Index.

The long-awaited communication comes against the backdrop of Beijing tightening control over the property developer, while taking measures to stabilise China’s crisis-hit property sector.

(Reporting by Donny Kwok; Editing by Himani Sarkar)