On July 7, Sunac China (01918.HK) fell 6.45% in regular trading to HKD 0.59, with turnover of approximately HKD 67.07 million, extending the prior session's 6.15% decline.

The continued selloff follows the company's announcement that its zero-coupon mandatory convertible bonds with remaining principal of USD 2.533 billion have been fully converted into shares, resulting in the issuance of approximately 2.906 billion new shares, representing 17.03% of previously issued share capital. While the conversion eliminates a significant debt obligation, the substantial dilution to existing shareholders has triggered sustained selling pressure as the market digests the impact.

Adding to negative sentiment, Sunac's subsidiaries recently disclosed additional overdue borrowings of approximately RMB 923 million and three new breach-of-trust incidents. Separately, the company reported new defaulted debts totaling approximately RMB 686 million along with five breach-of-trust filings. Two major litigation cases involving approximately RMB 4.057 billion have also entered the execution phase, underscoring persistent onshore debt distress.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)