On September 18, 2021, The Wall Street Journal published an article entitled “How Beijing’s Debt Clampdown Shook the Foundation of a Real-Estate Colossus: China Evergrande’s looming collapse and its ripple effect on the economy will pose a test for the government’s campaign to keep housing affordable for the masses” which stated, among other things, that “[t]he party has ended. Years of aggressive borrowing have collided with Beijing’s crackdown on debt, leaving [China Evergrande] on the brink of collapse.”
On this news, EGRNF fell around $0.08 per share, or 18%, on the next trading day, September 20, 2021, on unusually heavy trading volume, damaging investors.
Then, on September 28, 2023, Reuters published an article entitled “Evergrande says chairman under investigation over suspected ‘illegal crimes’”, which detailed how trading in China Evergrande had been suspended after a report that its chairman had been placed under police watch. On this news, trading in China Evergrande securities was halted indefinitely.