Property giant China Evergrande Group’s Hengda Real Estate unit announced an on-time interest payment to drive the company’s shares up double-digits, SeekingAlpha reported.
- Hengda Real Estate said it will pay CNY252 million or $35.9 million of interest on the 5.80% September 2025 bond, giving the embattled China Evergrande Group breathing room.
- Two more interest payments of the group are due in the week, with $83.5 million interest on the March 2022 bonds owing on September 23 and $42.5 million in interest on its March 2024 notes due on September 29.
- The People’s Bank of China is also looking to boost liquidity in the country’s financial system by infusing CNY120 billion through the seven-day and 14-day repurchase agreements.
Analysts believe that the announcement’s impact is yet to be seen, as it is unclear if concerns have been addressed. EGRNF is up 38.21%.