Transportation
Evergrande EV Unit’s Shares Surge Up to 113% as Potential Buyer Found
- Unconfirmed deal involves buyer taking initial 29% stake
- Liquidators says buyer may provide credit line for EV output
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Shares of the EV unit of embattled real estate developer China Evergrande Group more than doubled after it said liquidators are in talks with a potential buyer to take a stake in the company and may also extend a new line of credit to support production.
The stock jumped as much as 113% — the biggest gain on an intraday basis in almost 10 years — in Hong Kong on Monday, when trading resumed after being suspended since May 17. The unit, Evergrande New Energy Vehicle Group Ltd. said Friday it was being pursued by local government authorities to pay back 1.9 billion yuan ($262 million) in subsidies and incentives.