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Updated 08:26 IST, July 29th 2024

Evergrande's EV arm plummets after bankruptcy proceedings sought for subsidiaries

Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong) received a court notice about the application on July 25.

Reported by: Business Desk
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China Evergrande's EV arm drops
China Evergrande's EV arm drops | Image: Shutterstock

Evergrande's stock slides: Shares of China Evergrande New Energy Vehicle dropped 7 per cent on Monday morning following the news that creditors have applied for bankruptcy proceedings for two of its subsidiaries.

The units in question, Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong), received notice from a local court regarding the application on July 25.

Evergrande's electric car division stated that this notice significantly affects the production and operations of the company and its relevant subsidiaries, according to a filing to the Hong Kong Stock Exchange late Sunday.

The stock price fell to HK$0.295 after initial early gains. So far this year, shares of China Evergrande New Energy Vehicle have declined by nearly 40 per cent.

(With Reuters Inputs)

Published 08:26 IST, July 29th 2024