Shares of Evergrande, the distressed Chinese real estate firm, have experienced a sharp decline of approximately 80% during their initial day of trading in Hong Kong following a span of 18 months. The stocks have decreased in value by over 99% in the last three years because the government took action against real estate companies.

0

Evergrande is in the middle of a crisis affecting the real estate market, which is a big problem for the world's second biggest economy. This Sunday, the company announced that it had a loss of 33 billion yuan ($4. 5 billion; £36 billion) for the first half of this year. However, it was better than the 66. 4 billion yuan loss that it reported for the same period last year.

1

The company's bosses have made some changes to make sure the group has enough money and is financially stable, according to a document submitted to the Hong Kong Stock Exchange by Evergrande. The company said that its earnings for the first half of this year increased by 44% to 128. 2 billion yuan compared to the same time last year. However, the amount of money it has available decreased by 6. 3% during the same time.

2

Evergrande's shares were not allowed to be bought or sold since March of last year. According to Qian Wang, who is an economist at investment firm Vanguard, it is important for policymakers to stop the spread of financial problems and minimize its impact on the entire financial system. She said that policymakers will need to give more money and help with loans to the economy and the real estate industry.

3

Problems in China's property market are making people worry about the recovery of the world's second largest economy after the pandemic. On Monday, China reduced a tax on stock trading by 50% in order to make the capital market more active and increase the trust of investors. The decision was made a few days after the national bank lowered its important interest rate for the second time in three months.

4

This move was taken because the country's exports were declining and people were not spending much on products. The value of the main stock markets in Hong Kong and China went up after the announcement. Evergrande recently announced that they suffered a loss of 581. 9 billion yuan in both 2021 and 2022. Country Garden, a big real estate company in China, recently announced that it might lose around $7. 6 billion in the first half of this year.

5

Moody's gave the company a lower rating because they think there is a high risk of not having enough money and not being able to pay back loans. China's real estate industry was greatly affected when new regulations were introduced in 2020 to limit the amount of money that large real estate companies could borrow.

6

Evergrande, which used to be the most successful real estate developer in China, accumulated debts of over $300 billion as it grew rapidly to become one of the largest companies in the country. The company didn't pay the interest on some loans from other countries, which caused them to miss an important deadline in 2021. Evergrande is trying to talk again with the people it owes money to because it couldn't pay them back on time.

7

Earlier this month, the company asked a New York court for help with their financial problems by filing for Chapter 15 bankruptcy protection. Chapter 15 helps protect the American possessions of a company from another country while it tries to fix its financial problems. Evergrande's financial issues have caused problems for other property companies in the country.

8

These companies are also unable to repay their debts and have halted construction on various projects across the nation.

9