Business

fis astec: Cost of borrowing Evergrande stock hits new high on debt fears – Times of India

SINGAPORE: The price of borrowing China Evergrande shares rocketed final week, information from analysis agency FIS Astec exhibits.
Quick sellers borrow shares, promote them and hope to purchase them again for a lower cost. They’re paying charges equal to annualised charges of 92%, FIS Astec figures as of Sept. 23 present.
That’s up from 50% two weeks earlier.
Solely about 2.2% of Evergrande’s excellent shares are on mortgage, the info exhibits. The Chinese language developer owes $305 billion, is brief on money and its share worth is down 83% this yr.
Market members have mentioned the surge in borrowing prices displays each rising enthusiasm for brief positions within the firm and a scramble to seek out inventory to borrow as lenders have recalled shares to dump positions.
Borrowing prices for another builders have climbed, however to not the identical extent, based on FIS Astec.
Annualised charges for Guangzhou R&F Properties’ shares , for instance, rose from lower than 1% initially of the month to six.6% on Sept. 23.




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