China Mutual Fund Values Evergrande Shares at Next-to-Nothing
- HuaAn Fund assigns value of HK$0.01 for each Evergrande share
- Fair value for Sunac, Shimao also slashed as shares suspended
The China Evergrande Group Royal Peak residential development in Beijing.
Source: Bloomberg
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Shares of some of China’s largest property developers are now considered almost worthless by a mutual fund that holds the assets.
An exchange-traded fund run by HuaAn Fund Management Co. has assigned a value of HK$0.01 for each share of China Evergrande Group and Evergrande Property Services Group Ltd. in its portfolio, according to a statement late Tuesday. Before trading in those real estate companies was suspended in mid-March, their shares were at HK$1.65 and HK$2.30, respectively.