Evergrande resumes work on more than 10 property projects

WION Web Team
New Delhi Updated: Oct 24, 2021, 09:08 PM(IST)

Evergrande-China's largest property group by sales Photograph:( Reuters )

Story highlights

Evergrande is a major real estate firm in China and carries USD 300 billion in debt. It has missed several bond interest payment deadlines recently and fears of default have kept global investors on edge

China's Evergrande on Sunday said that it had resumed work on more than 10 projects in six cities including Shenzhen. The statement comes after it appeared to avert default with a last-minute bond coupon payment last week.

Evergrande is a major real estate firm in China and carries USD 300 billion in debt. It has missed several bond interest payment deadlines recently and fears of default have kept global investors on edge. Since the real estate sector forms a major part of the Chinese economy, there are fears that Evergrande's default would spill into the global economy.

During late August, the company said that some projects were suspended because of delays in payment to suppliers and contractors. 

Also read | Surprise interest payment from Evergrande boosts global markets

On Sunday, it said in a post on its Wechat account that some of the projects resumed work and had entered the interior decoration stage while other buildings had recently finished construction.

The company further added that its efforts to guarantee construction would shore up market confidence. 

On Friday, Evergrande's share price jumped more than four per cent in Hong Kong, though that came a day after a drop of more than 12 per cent sparked by its announcement that the planned sale of its property services unit had fallen through.

Though interest payment by Evergrande gave brief respite market watchers said it was unlikely that the company would be able to repay all interest and that the rebound was likely to be limited.

Read in App