China Evergrande shares jump after it names state firm official to board (updated)

China Cinda Asset Management

24/01/2022 03:36

(Adds new board appointments, other details)
    HONG KONG, Jan 24 (Reuters) - Shares of China Evergrande
Group  3333.HK  jumped more than 13% on Monday, a day after the
embattled developer said it would appoint an official from a
unit of state asset manager China Cinda Asset Management
 1359.HK  to its board.  
    Evergrande's assets are expected to be taken over by
state-owned firms in a restructuring led by the Guangdong
provincial government, where the developer is based, and the
appointment could signal the restructuring is moving forward. 
    Shares of the developer also drew support from a Friday
report by Financial intelligence provider REDD that said the
provincial government was aiming to release a framework debt
restructuring plan for Evergrande by March.
    It plans to separate the company's offshore assets and sell
them to pay off foreign debt, in a boost to foreign lenders'
hopes of recouping some funds, the report added.  urn:newsml:reuters.com:*:nL1N2SR03B
    Evergrande is the world's most-indebted property company
with more than $300 billion in liabilities, including nearly $20
billion of international bonds all deemed to be in default after
a run of missed payments late last year.
    The developer said on Sunday it would appoint two new board
members, including non-executive director Liang Senlin, chairman
of China Cinda (HK) Holdings Company Limited, a unit of one of
the country's four biggest state asset managers.
    Evergrande set up a risk management committee last month
mostly comprising senior officials from state entities including
China Cinda Asset Management.
    The other new director is Siu Shawn, chairman of China
Evergrande New Energy Vehicle Group Limited   0708.HK . The
company said in October it would prioritise the growth of its
nascent EV business over its troubled core real estate
operations.  urn:newsml:reuters.com:*:nL1N2RL01Y

 (Reporting by Clare Jim; Editing by Kim Coghill and Himani
Sarkar)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))