HONG KONG, Dec 6 (Reuters) - Shares of China Evergrande
Group tumbled 12% to an 11-year low on Monday after
the firm said there was no guarantee it would have enough funds
to meet debt repayments, prompting Chinese authorities to summon
The shares fell as a 30-day grace period on a coupon payment
of $82.5 million due on Nov. 6 comes to an end on Monday.
Evergrande, once China's top-selling developer, is grappling
with more than $300 billion in liabilities. A collapse could
send shockwaves through the country's property sector and
In a filing late on Friday, Evergrande, the world's most
indebted developer, also said it had received a demand from
creditors to pay about $260 million.
That prompted the government of Guangdong province, where
the company is based, to summon Evergrande Chairman Hui Ka Yan,
and it later said in a statement it would send a working group
to the developer at Evergrande's request to oversee risk
management, strengthen internal controls and maintain normal
In a series of apparently coordinated statements late in the
evening, China's central bank, banking and insurance regulator
and its securities regulator sought to reassure the market that
any risks to the broader property sector could be contained.
Short-term risks caused by a single real estate firm will
not undermine market fundraising in the medium and long term,
the People's Bank of China said, adding that housing sales, land
purchases and financing "have already returned to normal in
Evergraned's stock fell more than 12% to HK$1.98, its lowest
since May 2010.
(Reporting by Clare Jim; Editing by Anne Marie Roantree and