By Yifan Wang
Shares of Fantasia Holdings Group stumbled in Hong Kong on Friday, as the Chinese property developer resumed trade after over a year of suspension amid its liquidity crisis.
The stock has lost as much as 60% and was last down 57% at HK$0.086.
The selloff came after Fantasia on late Thursday posted heavy losses for 2021 and 2022. The company had a loss of 6.07 billion yuan (US$841.0 million) in 2022 and a loss of CNY10.47 billion in 2021, mainly dragged by sharply lower property sales.
Previously, the firm had delayed publishing these earnings as it struggled to restructure debts amid a broader liquidity crisis in China’s real estate sector. Shares had been suspended from trading for more than a year since early 2022.
Other Chinese developers also fell on Friday, led by Country Garden Holdings, which slumped 9.6%. The drop followed Country Garden’s warning that expects to swing to a loss in the first half of the year, as its bottomline takes a hit from lower real estate business margins and property-project impairments amid declining sales.
“Since 2021, the industry has entered an unprecedented difficult period with multiple unfavorable factors, resulting in severe difficulties and challenges for industry sales and open market financing,” Country Garden said in a stock exchange filing late Thursday.
Write to Yifan Wang at [email protected]
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