Pursuits

Evergrande Slides After Hong Kong Tower Purchase at Twice Record

  • Company bought tower from Chinese Estates for $1.6 billion
  • Previous record was $697 Million in 2014 paid by Citigroup
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Evergrande Real Estate Group Ltd. shares plunged after the Chinese developer paid a record $1.6 billion for a Hong Kong office building, a price analysts at JPMorgan Chase & Co. slammed as too high.

The shares of China’s third-largest developer slumped as much as 8.9 percent, the most since Aug. 24, and were trading 5.5 percent lower at HK$6.17 as of 10:50 a.m. in Hong Kong. The benchmark Hang Seng Index was down 2.1 percent.