China Evergrande tries to reassure investors on redemptions
Debt-burdened property developer China Evergrande said it would prioritise the redemption of investment for retail investors as questions hovered over its ability to meet interest payments.
Chairman Hui Ka Yan's moved to reassure investors after a week where shares in the company had plunged over concerns over how it would service its $305bn debt pile.
On Wednesday the developer said yesterday it had "resolved" a coupon payment on an onshore bond, sending the shares soaring.
Global investors are worried that Evergrande’s problems could cause contagion in the rest of the Chinese financial market.
The company faces $83.5m in dollar-bond interest payments due today on a $2bn offshore bond and a further $47.5m next week.
Hui overnight called a meeting of managers and urged them to resume construction and ensure properties were delivered and wealth management products redeemed.
"Only by fully resuming work and production, resuming sales and resuming operations can the rights and interests of home buyers be protected and smooth payment of investment product buyers ensured," he said, according to a report in the state-owned China Securities Journal.