China Mutual Fund Values Evergrande Shares at Next-to-Nothing

Shares of some of China’s largest property developers are now considered almost worthless by a mutual fund that holds the assets.

An exchange-traded fund run by HuaAn Fund Management Co. has assigned a value of HK$0.01 for each share of China Evergrande Group and Evergrande Property Services Group Ltd. in its portfolio, according to a statement late Tuesday. Before trading in those real estate companies was suspended in mid-March, their shares were at HK$1.65 and HK$2.30, respectively.

Evergrande, the world’s most-indebted developer, defaulted in December and fell short of delivering a promised restructuring plan last month, fueling concerns about its ...