Shares in troubled Chinese real estate group Evergrande rallied on Monday after it announced it had resumed work on more than 10 projects as it tries to allay fears over its debt.
The company’s liquidity crisis has shaken investor confidence and shook the Chinese property market, while fueling fears of contagion to the rest of the economy.
But the company, which has more than $300 billion in debt, last week paid interest on an offshore bond ahead of Saturday’s maturity, avoiding default.
Evergrande had defaulted on a number of offshore bonds, and while some have a 30-day grace period, the general expectation was that it would not be able to meet its commitments.
Investors celebrated the announcement that operations in Shenzhen “resumed work and production on more than 10 projects in six locations”.
The company’s shares rose more than 4% during the morning.
The group had 778 projects in 233 cities across China at the end of June, according to the latest report.
Work at some sites has been suspended in recent months, while suppliers and contractors complained they had not received payments.
The company has been in crisis since China began to control the colossal real estate sector to contain excessive debt.
But provisions to restrict borrowing prevented the company from completing its projects.
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