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Evergrande Health jumps 10 per cent after arbitration calls for truce in war with electric car maker Faraday Future
- Faraday Future said its largest shareholder Evergrande Health could no longer prevent it from seeking alternative funding
- Evergrande said financing options come with ‘stringent conditions’
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Shares of Evergrande Health, the largest shareholder of Chinese electric carmaker Faraday Future, surged Friday in Hong Kong after an arbitration decision pointed to the first sign of a resolution of its month-long dispute with the struggling company.
The Hong Kong-listed unit of property developer giant China Evergrande was up 10.9 per cent up at HK$11 early afternoon trade, having earlier surged as much as 15 per cent in morning trade.
The Hong Kong International Arbitration Centre has released its decision to the two companies involved in the arbitration, which remains confidential to the public, it told the Post.
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Separate announcements published by both companies on Thursday imply that California-based Faraday Future has been allowed to seek fresh financing sources, although they differ on the conditions attached.
This is the latest twist of a dispute that has embroiled both companies in public back-and-forth talks and confrontations since the beginning of October, adding to the drama in Faraday Future’s efforts to rival electric carmaker Tesla.
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Evergrande Health said in a statement posted on the Hong Kong’s stock exchange that the arbitrator had rejected Faraday’s application to revoke its consent right in deciding its financing, but allowed the electronic vehicle start-up to seek financing under “stringent conditions”.
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