China Evergrande New Energy Vehicle’s shares plunged by 23% in Hong Kong on Friday<\/b>
\nChina Evergrande New Energy Vehicle, the electric vehicle unit of financially strapped China Evergrande Group, has scrapped a plan for a secondary listing at the Shanghai Stock Exchange, the company said in a filing Sunday. The proposed issue \u201cwill not proceed,\u201d the statement said. Shareholders approved a plan to issue 1.56 billion yuan-denominated shares on October 20 last year. China Evergrande New Energy\u2019s shares have collapsed since that date, however, closing at HK$2.23 on Friday compared with HK$23.40 on Oct.20. On Friday, the company also warned of payment problems. \u201cAs of the date of this announcement, the group is experiencing (a) severe shortage of funds,\u201d according to a securities filing. \u201cIn view of the liquidity pressure, the company has suspended paying some of its operating expenses and some suppliers have suspended supplying for projects.\u201d China Evergrande New Energy said it is trying to raise capital and sell assets but hasn\u2019t reached any binding agreements. (See earlier post.) China Evergrande New Energy shares fell 23% on Friday in Hong Kong on rumored payments problems. Shares in parent China Evergrande Group, led by billionaire Hui Ka Yan, plunged 11.6% to HK$2.36 on Friday. China Evergrande Group is the world\u2019s most indebted real estate developer, with more than $300 billion of obligations. Worries about non-payment and contagion rattled global financial markets this week. China Evergrande New Energy is 75% owned by China Evergrande Group. See related posts: China Detains Fallen HNA Ex-Billionaire Chairman Ahead Of Restructuring Vote Investors May Be Further \u201cLeft Smarting\u201d After Evergrande As China Retools Economic Policy @rflannerychina<\/p>\n