Evergrande plans switch from real estate to electric vehicles

Evergrande plans to move away from real estate to focus on electric vehicles. The debt-racked Chinese developer saw shares rise by 6% yesterday, following a statement by the company’s chair Hui Ka Yan. Scotching rumours that Evergrande intended to sell its EV arm, which was only founded in 2019, Hui Ka said that the group intended to make its electric vehicle division its main business within a decade. The share price of Evergrande’s electric vehicle division jumped by 11.4%. While the move would help Evergrande reduce its $305bn debt by gradually scaling down its massive undeveloped land holdings, analysts said it was unclear how this announcement would affect the company’s planned disposals, including stakes in the electric vehicle unit. The Times (£)