China’s Evergrande’s shares pummelled on fear of debt default

As Evergrande scrambles to raise funds to pay off debt, regulators warn of broader risks to China’s financial system.

Shares of Evergrande on Monday plunged as much as 19 percent to their lowest in more than 11 years, extending losses as investors take a dim view of its business prospects with a fast approaching deadline for payment obligations this week.

By noon, the stock had touched 2.06 Hong Kong dollars ($0.26), the weakest level since May 2010.

The company’s property management unit dropped more than 12 percent, while its electric car unit declined 8 percent. Movie streaming company Hengten Net, majority-owned by Evergrande, plummeted 14 percent.