Evergrande is stopping plans to go public in Shanghai

The hard-hit Chinese real estate company Evergrande is stopping plans to go public for its electric car subsidiary of the same name in Shanghai. On the Hong Kong stock exchange, the Evergrande New Energy Vehicle (NEV) share price then fell by more than ten percent. Evergrande NEV announced that the parent company's financial difficulties had "adverse effects" on the planned mass production of electric cars. There is "no guarantee" that Evergrande NEV will meet its financial obligations, the automaker warned. Its Hong Kong share price has already fallen 80 percent since the beginning of the year. The parent company Evergrande is sitting after an aggressive, credit-funded expansion in recent years on debts equivalent to around 260 billion euros. It is unclear whether the Chinese state will help the company; Experts speculate that Beijing could order a breakup. China Evergrande Chairman Hui Ka Yan set out to overtake Tesla, local rival Nio and other large companies to create the world's largest and most powerful electric vehicle manufacturer by 2025. For a while, investors believed in this vision - Evergrande Auto's market cap hit $ 87 billion earlier this year. However, the stock has crashed since then, losing around 93 percent so far this year. Evergrande operates and develops 1,300 real estate projects across the country. A total of 200,000 people work for the group. Every year around 3.8 million people are also hired for real estate projects. To increase sales, Evergrande invested in other business areas such as electric cars, insurance, bottled water and football. The Chinese have been running a joint venture for electromobility with the German drive specialist Hofer Powertrain since mid-2019.