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Developer Evergrande says 57,400 properties handed to buyers

Developer Evergrande says 57,400 properties handed to buyers

China Evergrande last week bought itself a reprieve from recent turmoil after paying interest on an offshore bond before a Saturday deadline. (Photo: AFP)

BEIJING: Troubled Chinese developer Evergrande said Wednesday (Nov 3) that it has delivered over 57,400 units to buyers between July and October, in a latest bid to calm worries over its liquidity crunch.

As one of China's biggest property developers, fears around Evergrande's debt mountain have battered investor sentiment and shaken the country's mammoth real estate market.

But the firm has been trying to shore up confidence in recent weeks - including meeting recent interest payments it had been expected to miss - and said last month that work had resumed on over 10 stalled projects.

On Wednesday the company posted to social media that from July to October it had finished and delivered 57,462 new properties to their buyers.

"Guaranteeing property deliveries is the top priority of Evergrande Group," the statement added.

The completed properties were across 184 different projects, it said.

Shares rose more than 2.5 per cent in Hong Kong on Wednesday afternoon.

Evergrande is bogged down in a sea of over US$300 billion in liabilities, but averted default twice in October after making overdue interest payments to offshore bond holders.

The crisis has prompted rare public anger and protests from anxious homebuyers, suppliers and investors.

The developer plunged into crisis after Beijing began clamping down on the country's colossal property sector, which by some estimates accounts for a quarter of the economy, in a bid to rein in excessive debt.

China now appears to be rolling back some of those regulations, however, with the Securities Times reporting earlier that local banks had begun easing some credit controls on homebuyers and developers in the wake of orders from the central bank.

Source: AFP/nh


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