Tower deal causes Evergrande slide

Evergrande Real Estate Group Ltd shares plunged after the Chinese developer paid a record $1.6 billion for a Hong Kong office building, a price analysts at JPMorgan Chase & Co slammed as too high.

The shares of China's third-largest developer slumped as much as 3.98 percent and traded at HK$6.27 ($0.81) at the close in Hong Kong on Friday.

Evergrande agreed to buy the Mass Mutual Tower in Hong Kong for HK$12.5 billion from Chinese Estates Holdings Ltd and will pay the amount over a six-year period. The 26-story building is fully occupied, the firm said in a statement to the Hong Kong Stock Exchange on Thursday.