Skip to content
Subscriber Only

Evergrande Stock Traders Are Facing Increasing Liquidity Risk

  • Stock’s bid-ask spread has widened to levels last seen in 2015
  • Developer sinks 8.6% Tuesday after hiring financial advisers
Video player cover image
Evergrande Hires Financial Advisers to Assess Capital Structure

Getting out of China Evergrande Group’s shares is becoming increasingly difficult, according to a measure of market liquidity. 

The stock’s average bid-ask spread -- or the gap between prices sought by buyers and sellers -- has more than doubled to 0.35% since July and is near the widest since the bursting of China’s stock bubble in 2015, according to data compiled by Bloomberg. The spread also affects transaction costs, making Evergrande one of the priciest stocks to trade in the Hang Seng China Enterprises Index, the data show.