China Evergrande calls for suspension of bond trading after downgrade



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SHANGHAI, Sept. 16 (Reuters) – Hengda Real Estate Group Co Ltd, the main unit of the China Evergrande group, said on Thursday that it had requested the suspension of trading of its onshore corporate bonds for a day and that it would modify the trading mechanism to resume trading, citing a downgrade.

Hengda had received a notice on September 15 from the rating agency China Chengxin International (CCXI) indicating that the rating of its bonds had been downgraded from A to AA, and that the ratings of its bonds and its issuers were placed on a watchlist for further damage, he said in a statement.

Trading in its Shanghai exchange-traded bonds at auction would be suspended until further notice from September 16 and would only be traded through negotiations.

Reporting by Samuel Shen and Andrew Galbraith; Editing by Jacqueline Wong

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