(Yicai Global) Sept. 24 -- Trading in the stock of China Fortune Land Development was suspended after the debt-ridden property developer said it plans to discuss a comprehensive risk management plan with creditors.
The halt is not expected to last more than five trading days as China Fortune Land intends to wrap up the talks soon, under the government’s guidance, the Beijing-based company said in a statement late yesterday.
China Fortune Land had its first bond default earlier this year amid economic and policy changes affecting the real estate sector. As of Sept. 3 it had failed to repay principal and interest totaling CNY87.9 billion (USD13.6 billion), according to an earlier statement.
Shares of China Fortune Land [SHA:600340] closed up 4.7 percent at CNY4 (62 US cents) yesterday. The stock has fallen 69 percent since the start of this year.
Ping An Life Insurance, China’s biggest insurer by market cap, became China Fortune Land’s largest shareholder on Sept. 9 after China Holding was forced to cut its stake. Ping An spearheaded the formation of a creditor committee in February to lead China Fortune Land’s debt restructuring.
Editor: Futura Costaglione