Evergrande EV Unit’s Shares Surge on News of Potential Buyer, Credit Line

00:00

00:00/00:00

Listen to this article 1x

A pedestrian walks by a shuttered China Evergrande Group New Vehicle’s showroom in Shanghai. Photo: Bloomberg

(Bloomberg) — Shares of the electric vehicle EV unit of embattled real estate developer China Evergrande Group more than doubled after it said liquidators are in talks with a potential buyer to take a stake in the company and may also extend a new line of credit to support production.

The stock jumped as much as 113% — the biggest gain on an intraday basis in almost 10 years — in Hong Kong on Monday, when trading resumed after being suspended since May 17. The unit, Evergrande New Energy Vehicle Group Ltd. said Friday it was being pursued by local government authorities to pay back 1.9 billion yuan ($262 million) in subsidies and incentives.