Shares of China’s Evergrande slumped nearly 14% on the Hong Kong bourse on Thursday after shares resumed trading, according to a report by Markets Insider on Thursday.
Investors disposed of the stock after a significant deal to sell 50.1% of Evergrande’s property services unit to rival company Hopson Development collapsed. The deal would have been valued at $2.6 billion.
Evergrande also disclosed that home sales had dropped dramatically in a Wednesday’s filing, an issue that further spooked investors.
The company indicated that it made no progress on selling its assets, adding that there is no guarantee that the Group would be able to meet its financial obligations after difficulties and uncertainties in improving its liquidity.
Evergrande shares closed 12.54% lower, closing at $0.33 each. The company’s stock price has slumped more than 85% in the last 12 months. The broader Hang Seng index dropped 0.47%, as China’s CSI 300 edged up 0.36%.