Why China Evergrande Stock Dropped, and Its EV Stock Followed

Shares of Chinese companies named "Evergrande" are having a topsy-turvy day today. China Evergrande Group (OTC: EGRN.F), the real estate giant that's been making headlines over the past year, was down 14% by 11:33 a.m. EDT on Thursday. And while shares of its China Evergrande New Energy Vehicle Group (OTC: EVGR.F) started the day by soaring 55.5%, they later followed the real estate company down, dropping by 11%!

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China Evergrande proper is plummeting on reports that the Chinese government has instructed local governments "to prepare for the potential downfall of China Evergrande Group," as The Wall Street Journal put it today.  

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Source Fool.com