Investors have been concerned about cashflow at Evergrande as the country's most indebted property developer with interest-bearing indebtedness of about $110 billion at the end of last year scrambles to raise funds and cut debt in the face of tighter industry regulations.

Shares of Evergrande were last up 7.4%, poised to snap a three straight sessions of falls, while those of the company's EV unit, China Evergrande New Energy Vehicle, were 43.5% higher after surging 67% to an all-time high.

Evergrande New Energy Vehicle said on Sunday it would use the new capital to fund technology research and repay debt. China Evergrande holds a 75% stake in Evergrande New Energy Vehicle.

CGS-CIMB Securities' China research head, Raymond Cheng, said the new fund would be enough for the business development of Evergrande New Energy Vehicle for the next 12 months, helping the parent company reduce further financing on the unit.

"Overall, it is another positive move for Evergrande to approach its orange or yellow category this year under the three red lines," Cheng said.

Dubbed "the three red lines", Chinese regulators outlined caps on debt-to-cash, debt-to-assets and debt-to-equity ratios at a meeting last year, and developers would not be able to raise new debt if they are in the red category.

China Evergrande has vowed to cut debt by 20%, or 150 billion yuan, this year.

The stock rose close to 16% last Tuesday after the company said it would redeem early HK$16.1 billion of convertible bonds maturing in 2023.

($1 = 6.4751 Chinese yuan)

(Reporting by Clare Jim; Editing by Subhranshu Sahu)