Chinese developer Sunac’s shares sink in Hong Kong after 12-month suspension is lifted

Sunac’s shares slumped as much as 59 per cent in Hong Kong as trading in the developer’s shares resumed after a 12-month suspension

Trading resumed as Sunac met the Hong Kong stock exchange’s conditions, including the publishing of its long-delayed results

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Sunac China Holdings is in the process of restructuring its offshore debt of US$9.1 billion. Photo: Shutterstock

Published: 12:16pm, 13 Apr 2023Updated: 4:49pm, 13 Apr 2023

Shares of Sunac China Holdings plunged in Hong Kong on Thursday as trading resumed following a 12-month suspension, as the embattled mainland Chinese developer undergoes a US$9.1 billion debt restructuring.

The company published its annual results for 2021 and 2022 to meet the Hong Kong stock exchange’s requirements for trading to resume, according to Sunac’s filing on Wednesday evening.

The stock plunged as much as 59 per cent before closing at HK$2.04 on Thursday after trading resumed following the suspension on April 1, 2022.

Trading in Sunac’s stock was likely to be “quite volatile”, said Will Chu, a senior associate at CGS-CIMB Securities.

The shares of at least 20 mainland Chinese developers are still suspended from trading on the Hong Kong stock exchange. Photo: AP Photo

Sunac was a member of the Hang Seng China Enterprises Index and its removal “saw an immediate selling pressure by index funds”.

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