Developer China Aoyuan drops after served with writ of summons claiming debt

China Aoyuan

29/12/2021 03:50

** Shares of property developer China Aoyuan Group Ltd
 3883.HK  drop 9.1% to HK$1.50, on track for their biggest daily
percentage decline since Dec. 14
    ** Stock hits the lowest since Dec. 21 and on course to snap
three straight sessions of gain; second biggest percentage
decliner in the Hang Seng Composite Index on properties and
construction stocks  .HSCIPC  
    ** Guangdong, China-based co says it has been served with a
writ of summons issued in a Hong Kong court by Citi and Nine
Masts Investment Fund for a claim of $131 mln debt  urn:newsml:reuters.com:*:nFWN2TD047
    ** China Aoyuan, which has a current market value of HK$4.45
bln ($570.65 mln), says the claim arises from alleged events of
default under a credit agreement in which the company is the
guarantor and its unit is the borrower 
    ** Says the results of the claim will not have material
adverse impact on its business and financial conditions
    ** The Hang Seng Mainland Properties Index  .HSMPI  falls
1.6% and the Hang Seng Composite Index on properties and
construction stocks eases 0.9%
    ** The Hang Seng China Enterprises Index  .HSCE  slips 0.9%
and the Hang Seng Index  .HSI  down 0.7%
    ** As of last close, stock had fallen 77.8% this year

($1 = 7.7981 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))