China Evergrande's electric car unit's shares tumble 23per cent after warning

HONG KONG: Shares of China Evergrande's electric car unit plunged as much as 26 per cent on Monday (Sep 27) after it warned it faced an uncertain future unless it got a swift injection of cash and after it said it will not proceed with plans to issue RMB shares.The warning by China Evergrande New Energy Vehicle Group after the market closed on Friday was the clearest sign yet that the embattled property developer's liquidity crisis is worsening in other parts of its business. Shares of the electric car unit slid to as low as HK$1.66 in early trade before paring losses to fall 2.2 per cent. China Evergrande's stock rose 5 per cent to steady near the decade-low they made last week, while Evergrande dollar bonds were at distressed levels. In the broader market, concerns that a collapse at Evergrande could drive a global crisis have ebbed. "I think the markets have priced in that on the balance of probabilities, the shock and awe is over," said Kyle Rodda, analyst at brokerage IG Markets in Melbourne. "Markets are really just expecting from here on in, a company that is doomed to failure but one which won't be allowed to result in major risks within the Chinese financial system - or that (contagion) won't pervade global markets."

China Evergrande's electric car unit's shares tumble 23per cent after warning

HONG KONG: Shares of China Evergrande's electric car unit plunged as much as 26 per cent on Monday (Sep 27) after it warned it faced an uncertain future unless it got a swift injection of cash and after it said it will not proceed with plans to issue RMB shares.

The warning by China Evergrande New Energy Vehicle Group after the market closed on Friday was the clearest sign yet that the embattled property developer's liquidity crisis is worsening in other parts of its business.

Shares of the electric car unit slid to as low as HK$1.66 in early trade before paring losses to fall 2.2 per cent. China Evergrande's stock rose 5 per cent to steady near the decade-low they made last week, while Evergrande dollar bonds were at distressed levels.

In the broader market, concerns that a collapse at Evergrande could drive a global crisis have ebbed.

"I think the markets have priced in that on the balance of probabilities, the shock and awe is over," said Kyle Rodda, analyst at brokerage IG Markets in Melbourne.

"Markets are really just expecting from here on in, a company that is doomed to failure but one which won't be allowed to result in major risks within the Chinese financial system - or that (contagion) won't pervade global markets."