HONG KONG, May 27, 2024 (BSS/AFP) - Shares in the electric vehicle arm of
embattled Chinese property giant Evergrande doubled in Hong Kong on Monday
after news of a possible buyer of the firm emerged.

Heavily indebted Evergrande has become the poster child of the years-long
crisis in China's real estate market, a crucial pillar of growth in the
world's second-largest economy.

The firm was earlier this year handed a winding-up order by a Hong Kong court
after struggling for years to repay creditors after its 2021 default.

The crisis has impacted the company's subsidiaries, hammering their share
prices.

But Evergrande NEV briefly soared as much as 113 percent Monday as trading
resumed after being suspended on May 17. That represented the biggest intra-
day jump in nearly 10 years, according to Bloomberg News.

However, the firm's shares are still worth just a fraction of what they were
at their peak in 2021 before the crisis struck Evergrande.

The surge followed its announcement on Sunday that liquidators were in talks
with potential buyers of almost 60 percent of the company's shares.

The deal would see the buyer take an initial 29 percent stake and include an
option to purchase another 29.5 percent later.

It also mentioned the possibility of providing a line of credit "for the
purpose of financing the group's continuing operation", the statement added.

Evergrande NEV was last week ordered by Chinese authorities to repay 1.9
billion yuan ($262 million) of subsidies and incentives, which the company
said "could have a material adverse impact on the financial position".

In January, the company said its executive director Liu Yongzhuo had been
detained "on suspicion of illegal crimes".