By Clarence Leong


Shares of Longfor Group Holdings Ltd. rebounded on Thursday in Hong Kong, after the Chinese property developer sought to calm fears about its debt repayments.

The stock jumped as much as 11% in early trade, before paring its gains to 4.3% at HK$21.80. It came after Longfor's shares fell 16% on Wednesday in its worst one-day percentage loss since it went public more than a decade ago. The stock was still down 41% this year.

The private developer said in a late Wednesday filing to the Hong Kong stock exchange that it "is not aware of any reasons for such unusual fluctuations" of its share price. Longfor said its operations are normal and it has sufficient available cash reserves. Its "commercial paper due has been settled without any deferred payment," it added.

Analysts at brokerage CGS-CIMB led by Raymond Cheng said in a note that they believe Longfor's sharp share-price decline Wednesday was unjustified, adding the developer has strong financials and recurring income from malls and property management. CGS-CIMB maintained its add rating and HK$49.50 stock target price.

In a call with investors Wednesday evening, Longfor's management denied that it had defaulted on any commercial bills and aimed to repay 700 million yuan (US$104.1 million) worth of outstanding commercial bills by year-end, according to CGS-CIMB.

The company's Chief Financial Officer also told investors that it plans to repay some debts due in 2023 in the fourth quarter, which the analysts said suggests Longfor's financial position and cash flow are strong.

The city's benchmark Hang Seng Index was recently up 1.8%.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

08-11-22 0015ET