BUZZ-China Evergrande hits 7-1/2-year low, Fitch warns default may ripple

Reuters2021-09-15

** Shares of China Evergrande Group extend losses to third straight day to fall as much as 5.1% to HK$2.82, their lowest since Jan 2014

** Rating agency Fitch said several sectors could be exposed to heightened credit risk if China's No.2 property developer were to default, although the overall impact on the banking sector would be manageable

** Fitch downgraded China Evergrande Group to "CC" from "CCC+" on Sept 7, indicating that it viewed a default of some kind as probable

** Stock of co's electric-vehicle unit, China Evergrande New Energy Vehicle Group , rebounds 3.6% to HK$4.02 after plunging to HK$3.52, the lowest since May 2018

** Shares of its property management unit, Evergrande Property Services Group , also rise 5.2% to HK$4.24, after sinking to a record low of HK$3.93

** The Hong Kong Hang Seng subindex tracking property firms

falls 1.1% and the Hang Seng Composite Index tracking properties and construction stocks drops 1.2%

** The Hang Seng China Enterprises Index slips 0.7% and the benchmark index declines 1%

** As of last close, stock of China Evergrande Group had plunged 80.1% this year

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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