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Hong Kong stock market closed lower for the first time in five consecutive sessions on Thursday, 21 October 2021, as investors opted to secure recent profit amid concerns about a slowdown in the Chinese economy and worries about China Evergrande Group's potential debt default despite reports that China Evergrande Group has secured an extension on a defaulted bond. At closing bell, the benchmark Hang Seng Index declined 0.45%, or 118.49 points, to 26,017.53. The Hang Seng China Enterprises Index fell 0.03%, or 3.12 points, to 9,273.57. Chinese officials sought to reassure investors and homeowners on Wednesday over a debt crisis. Vice Premier Liu He told that overall risks in the property market are controllable, and the property market is on track for healthy development. The China Banking and Insurance Regulatory Commission said on Thursday that the Evergrande crisis will not hurt the credit of Chinese companies, citing China's stable growth. The China Evergrande Group reportedly won a more than three month extension to the maturity of a $260 million bond, a day after company said its $2.6 billion stake sale to lesser rival Hopson Development Holdings had fallen through. Evergrande, which has already missed multiple coupon payments for its bonds, also warned “there is no guarantee that the Group will be able to meet its financial obligations under the relevant financing documents and other contracts.” China Evergrande slumped 11.6% to HK$2.61 as the stock resumed trading after a three-week halt, while Evergrande Property Services Group lost 9%. The developer terminated a US$2.6 billion deal to sell a 50.1% stake in its property services unit following a disagreement on deal terms. The proposed buyer, Hopson Development, jumped 13.6% to HK$28.10. Powered by Capital Market - Live News
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