Country Garden Holdings Co Ltd's shares surged 5.15% to HK$0.500 in resumed trading on Tuesday after a suspension of over nine months. The stock's rise came amid expectations that the embattled Chinese developer is nearing a debt restructuring deal with creditors.
The Hong Kong-listed company announced its trading resumption, saying it has been undertaking measures to mitigate liquidity pressure and improve its financial position. According to reports, Country Garden's lawyer told a Hong Kong court on Monday that the company expects to reach terms with creditors next month regarding the restructuring of $16.4 billion in offshore debt.
Country Garden's shares had been suspended since late May 2022, as the company grappled with a severe cash crunch amid China's real estate crisis. The resumption of trading and potential debt restructuring deal have raised hopes for the company's recovery and provided relief to investors.
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