03-01-22, 07:30
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Re: Hong Kong: Giant Firm Shares Suspended & Pro-Democracy Website Closes
China: Evergrande Suspends Shares in Hong Kong as Firm Tries to Raise Cash
Crisis-hit Chinese real estate giant Evergrande has suspended trade in its shares in Hong Kong as investors await news on its restructuring plan.
Hong Kong: Pro-Democracy Website Citizen News is Latest to Close
Hong Kong independent news website Citizen News has announced it will close on Tuesday, the latest in a series of pro-democracy news outlets which have shuttered in recent months.
BBC News 3 JAN 2022.
The statement to the stock exchange did not give a reason for the trading halt.
Evergrande has more than $300bn (£222bn) of debt and is scrambling to raise cash by selling assets and shares to repay suppliers and creditors.
Last week, the company dialled back plans to repay investors in its wealth management products.
Evergrande said on Friday that each investor in its wealth management product could expect to receive $1,257 each month as principal payment for three months irrespective of when the investment matures.
The company had earlier not mentioned any amount and had agreed to repay 10% of the investment by the end of the month when the product matures.
Evergrande said in a statement posted on the wealth unit's website that the situation was not "ideal" and that it would "actively raise funds", and update the repayment plan in late March, without giving further details.
The announcement was seen as highlighting the deepening cash squeeze at the struggling property developer.
Last week, Evergrande did not make some interest payments on its offshore bonds.
Over the weekend, local media reported that a city government on the Chinese resort island of Hainan had ordered the company on 30 December to demolish its 39 residential buildings there within 10 days, as they were built illegally.
Evergrande has yet to comment on the reports.
The company's $19bn in international bonds were deemed to be in default by rating agencies after it missed a payment deadline last month.
Evergrande suspended its shares in early October, saying the move was ahead of "an announcement containing inside information about a major transaction".
There were reports at the time that rival real estate firm Hopson Development was set to buy a 51% stake in its property services unit.
However, later that month Evergrande said the $2.6bn (£1.9bn) deal had fallen through as they were unable to agree on the terms of a deal.
Evergrande's shares lost almost 90% of their value last year as investors became increasingly concerned about its future.
For months, many of the details of Evergrande's debt crisis have been clouded in uncertainty.
But some experts believe that this is no accident - it is exactly how Beijing wants it to be.
When the Chinese Communist Party changed its rules to limit how much money the country's property developers could borrow, they knew that it would cause major problems for Evergrande and other heavily indebted real estate firms.
China watchers say the government wanted to send a clear message that what they consider to be the reckless expansion of the sector could not continue.
Pro-Democracy Website Citizen News is Latest to Close
Citizen News said in a Facebook post that it would cease operations from 4 January 2022
Hong Kong independent news website Citizen News has announced it will close on Tuesday, the latest in a series of pro-democracy news outlets which have shuttered in recent months.
It cited a "deteriorating media environment" as the reason.
The move comes after last week's police raid on Stand News, where several were arrested on sedition charges.
Observers say new laws put in place by China have created a climate of fear stifling free speech.
Citizen News, established in 2017, is one of the last few Chinese-language pro-democracy publications in Hong Kong.
In its Facebook post late on Sunday, the outlet thanked readers for their support, before announcing "with a heavy heart" that it would cease operations from 4 January to "ensure the safety and well-being of everyone".
"Regrettably, what was ahead of us [was] not just pouring rains or blowing winds, but hurricanes and tsunamis," the statement said.
"Sadly, we can no longer strive to turn our beliefs into reality without fear because of the sea change in the society over the past two years and the deteriorating media environment."
Last week the pro-democracy website Stand News declared it would shut down after its offices was raided by police and senior staff were arrested on charges of "conspiracy to publish seditious publications".
Pro-democracy outlet Apple Daily - a publication known for being a vocal critic of the Hong Kong and Chinese leadership - was forced to close in June 2021, following sustained pressure on the paper from authorities. Its owner, prominent media mogul Jimmy Lai, has been jailed
Hong Kong's Stand News independent website shuts down after raid
Hong Kong was handed back to China from Britain in 1997 under the agreement that rights such as freedom of assembly and freedom of speech would be guaranteed in the territory.
However, critics say those rights have been increasingly eroded as Hong Kong authorities crack down on dissent in the city in recent months, following the imposition of a national security law introduced by Beijing in 2020.
The controversial law criminalises secession, subversion and collusion with foreign forces, and carries a maximum sentence of life in prison.
Hong Kong authorities reject those claims and the city's government denies targeting the media, insisting instead that the law is critical for preserving national security.
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