Shares of troubled real estate company Evergrande surge as it makes a comeback in the market

Shares in Chinese real estate company Evergrande have surged as trading resumed in Hong Kong after being suspended. The company halted trading after confirming that its founder, a billionaire, was being investigated by authorities. Despite its ongoing debt crisis, Evergrande's shares soared by over 40% before settling at around 15% higher. This follows a previous trading halt that lasted 17 months. The company's stock market valuation has plummeted by nearly 99% since July 2020. Evergrande's inability to make payments on its overseas debts and the investigation into its flagship Chinese business, Hengda Real Estate, have further complicated its restructuring plans. The company's founder and chairman is also facing legal issues. Analysts believe these recent setbacks increase the risk of Evergrande failing to reach a debt restructuring agreement with its creditors. Additionally, the company faces a court hearing in Hong Kong on a winding-up petition, potentially leading to liquidation.