By Yongchang Chin
China Evergrande Group's shares fell 8.5% to 1.51 Hong Kong dollars by midday Thursday on reports it missed coupon payments on offshore bonds.
The cash-strapped developer had US$255 million in new coupon payments due Tuesday for its June 2023 and 2025 notes, Reuters reported. This caused its US$19 billion in international bonds to be in cross-default, according to Reuters.
Bloomberg News reported that the due date had passed with no sign of payment by Evergrande, although both payments still have a 30-day grace period. China Evergrande didn't immediately respond to a request for comment.
Shares of Evergrande Property Services Group Ltd. and China Evergrande New Energy Vehicle Group Ltd. also fell on the news, down 2.7% and 6.3%, respectively.
China Evergrande on Sunday said construction work at more than 90% of its stalled residential projects has resumed. It added that it has picked up the pace of delivering apartments promised to homebuyers and plans to deliver 39,000 homes in 115 projects across China in December.
The company said separately last week that a state-backed risk team would engage with creditors and help steer its massive restructuring by deploying extensive resources to help contain risks. Evergrande's founder and chairman, Hui Ka Yan, chairs the committee while the company's chief financial officer, Pan Darong, is also a member.
The reassurance had helped lift Evergrande's stock, which is up 4.1% from a week earlier even after Thursday's declines.
Shares of Evergrande are still 34% lower from a month ago and have fallen 90% year to date.
Write to Yongchang Chin at email@example.com
(END) Dow Jones Newswires