China Evergrande Shares Jump Over Progress in Resuming Home Deliveries

This post was originally published on this site

Investing.com – China Evergrande Group’s (HK:3333) shares jumped on Tuesday morning after the property developer said on Sunday that it had made initial progress in resuming construction work.

China Evergrande’s Hong Kong shares jumped 6.08% to HK$1.57 ($0.20) by 10:56 PM ET (3:56 AM GMT), after climbing as high as HK$1.60.

Company chairman Hui Ka Yan chairman vowed to deliver 39,000 units of properties in December on Sunday, compared with fewer than 10,000 in each of the previous three months.

“With five days left this month, we must go all out to ensure we meet the goal of delivering 39,000 units this month,” he said in a statement. Hui also urged employees to fight day and night so that sales can be resumed.

His pledge came a day after China’s top real estate regulator said to Xinhua News Agency that the government would resolutely tackle property delivery risks by some top developers.

China Evergrande, with over $300 billion in liabilities, has been struggling to raise cash by selling assets and shares. The company missed paying offshore $82.5 million coupons earlier in the month. Fitch and S&P have downgraded China Evergrande to “restricted default” and “selective default” respectively after the missed payment.

The company has new coupon payments worth $255 million due later in the day for its June 2023 and 2025 notes.

Add Comment