EFEShanghai, China

The shares of the electric vehicle subsidiary of Chinese real estate giant Evergrande fell almost 26 percent at the Hong Kong Stock Exchange on Monday after it disclosed not having sufficient liquidity for pending payments and operations.

China Evergrande New Energy Vehicle Group's shares experienced a sharp fall at the start of trading session, but the decline moderated to around 11.2 percent after 11 am.

On Friday night, the company had announced a "severe shortage of funds" due to which it had "suspended paying some of its operating expenses" and some suppliers had suspended supplying for projects.

"In view of the difficulties, challenges and uncertainties in improving its liquidity as mentioned above, there is no guarantee that the Group will be able to meet its financial obligations under the relevant contracts," it added.

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