Evergrande EV Unit Shares Plummet 27% Amid CNY1.9 Billion Subsidy Repayment Demands

Jun 12, 2024, 02:05 AM

China Evergrande New Energy Vehicle Group has warned of losing key assets as local governments demand the repayment of subsidies worth CNY1.9 billion (USD262 million). This has led to a significant decline in the company's stock price. Shares of Evergrande's EV unit fell by 27% in Hong Kong after the announcement. The local authorities have asked Evergrande Automotive Holdings to terminate a series of investment cooperation agreements made since April 29, 2019. The company is required to return the incentives and subsidies within 15 days. Evergrande NEV [HKG: 0708] plunged 23% as of 10.25 a.m. today.