China Evergrande moves headquarters from Shenzhen to Guangzhou -report

SHENZHEN, China, Jan 10 (Reuters) – Cash-strapped property firm China Evergrande Group (3333.HK) has left what has been its headquarters in the city of Shenzhen and relocated to nearby Guangzhou, Chinese media outlet The Paper reported on Monday, citing people familiar with the matter.

On Monday afternoon, the company’s logo had been partially removed on one side of the building. Security personnel, accompanied by security vehicles, kept watch, and several of them said that the company had left the building last month.

Evergrande did not immediately respond to a request for comment.

Last September, the Shenzhen building was the scene of chaotic protests when investors crowded its lobby to demand repayment of loans and financial products.

Last year, the Guangzhou government sent a working team to Evergrande, sources told Reuters.

Sources have also said that lawsuits against the company from around China are being handled by a court in the city, which is the capital of Guangdong province, where Shenzhen is also located.

Evergrande was founded in Guangzhou, moving to Shenzhen only in 2017.

The world’s most indebted developer, it has more than $300 billion in liabilities including nearly $20 billion in offshore bonds deemed in cross-default by ratings agencies last month after it missed payments.

Last Tuesday protests also began at the Guangzhou offices, with around 100 investors in financial products issued by the company gathering to express their worries about getting their money back.

Small crowds of protesters have continued to gather near the site since, 10 protesters told Reuters.

Reporting by David Kirton in Shenzhen; additional reporting by Clare Jim in Hong Kong; editing by Tony Munroe and Jason Neely

Source: https://www.reuters.com/business/china-evergrande-moves-headquarters-shenzhen-guangzhou-report-2022-01-10/

World Economic Magazine

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