by Tyler Durden at ZeroHedge
It’s not just Evergrande that is about to keel over. Overnight, one of its smaller peers, Shanghai-based Sinic Holdings Group which focuses on the development of residential and commercial properties in China, was halted trading after it shares cratered in a freak 87% plunge on Monday afternoon. The plunge slashed the market value to just under $230 million, which is laughable for a listed developer in the city.
There was no reason for the selloff – an officer at the firm’s Hong Kong office said there’s no one to attend to media inquires which is probably not a good sign – which was attributed to the general panic resulting from Evergrande’s imminent default, nor did the company give a reason for the trading halt in Hong Kong.
One thing was clear: selling volumes were off the chart, and as Bloomberg observes, the sudden selloff in the last two hours leading up to the suspension was accompanied by a surge in trading volume that was about 14 times its average in the past year. The liquidation may have been a margin call on a core shareholder who was forced to hit any bid, but we probably won’t know for a few days.
Unlike Evergrande, Sinic is not faced with an imminent default, but…
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