Shares of China developer Sunac plunge 38% as trade resumes (updated)

Sunac Services Holdings

13/04/2023 02:58

(Adds details of debt restructuring plan)
       HONG KONG, April 13 (Reuters) - Shares of embattled
Chinese property developer Sunac China  1918.HK  fell 38% on
Thursday morning after the stock resumed trade following a
suspension of more than a year. 
    The share slump comes a day after the company said in a
statement to the Hong Kong stock exchange that it was to resume
trading and was implementing a debt restructuring plan.
    Shares were down by nearly 60% in pre-market trading but
trimmed losses after the market opened.
    Sunac is among many Chinese developers that defaulted last
year as the property sector reeled under a debt crisis.
    Over the last two years, property firms in China have
struggled to sell new houses or have sold them at lower prices
than expected. Beijing began rolling out supportive policies
late last year as a result.
        Sunac said in late March that it had reached agreements
with a group of offshore creditors to convert its debt into new
notes and convertible bonds backed by its Hong Kong-listed
shares and shares in its property management unit Sunac Services
 1516.HK .
    Sunac published its overdue 2022 interim results last month,
showing a core loss of 11.06 billion yuan ($1.61 billion).    
($1 = 6.8730 Chinese yuan)

 (Reporting By Donny Kwok, Anne Marie Roantree and Xie Yu;
Editing by Jacqueline Wong and Jamie Freed)
 ((annemarie.roantree@thomsonreuters.com; +852 97387151; Reuters
Messaging: annemarie.roantree.thomsonreuters.com@reuters.net))