China Evergrande tumbles after it says targeting restructuring proposal within six months

Shares of the troubled Chinese real-estate giant, Evergrande Group, is extending losses to the tune of over 9% in Thursday’s trading so far.

The extended sell-off comes after the property developer group said that it is targeting to have a restructuring proposal within six months.

The company made this announcement, in the face of Beijing tightening control over the property developer.

Market reaction

The Asian stock markets are in a sea of red, thanks to the aggressive tightening expectations fuelled by Fed Chair Jerome Powell at Wednesday’s policy announcements.

Dismal earnings reports in Asia combined with the Evergrande news have triggered steep losses in the regional indices.

Hang Seng is down over 2% while the Shanghai Composite Index and the Nikkei 225 lose 0.71% and 2.45% respectively.