Board members from Chinese property developer Shinsun Holdings Group have reassured the market that the business is conducting normal operations and has avoided a debt default following an unexpected sell-off of the company’s stock, reports Caixin. Hong Kong-traded shares of Shinsun fell nearly 54% during trading Thursday, its biggest single-day drop. Shinsun finished the day at HK$1.59 ($0.20), compared with the HK$ 5.59 offering price when it debuted in November 2020.
Shinsun’s board said in a statement it is unaware of reasons for the sell-off, nor does it have any information to disclose under market rules as the company continues operating normally with no debt in default.
Ranked 40th among Chinese developers in term of sales, Shinsun is a major player in eastern China’s affluent Zhejiang province and the surrounding Yangtze River Delta region. Earlier this month, S&P Global Ratings downgraded Shinsun from B to B-, saying the company may face greater difficulties in the next one to two years partly due to slower sales.
Shinsun booked RMB 14.6 billion yuan ($2.29 billion) of contract sales in the third quarter, down 60% from the previous quarter.