China Evergrande Shares Are Worthless, Top Fund Manager Says

Chinese mutual fund managers have been slashing the valuations of some Hong Kong-listed property stocks included in their exchange-traded funds (ETFs), reflecting what they believe is the fair value of the shares, which are all currently suspended.

HuaAn Fund Management Co. Ltd. is one of the latest to announce temporary write-downs. The shares of four distressed property companies in the HuaAn CES Hong Kong Stock Through Selected 100 ETF are now worth 69.9% to 99.6% less than before they were suspended, according to Caixin calculations based on a Wednesday statement by the Shanghai-based fund manager.