© Reuters. Vehicles drive near unfinished residential buildings from the Evergrande Oasis, a housing complex developed by Evergrande Group, in Luoyang, China September 16, 2021. Picture taken September 16, 2021. REUTERS/Carlos Garcia Rawlins
BEIJING (Reuters) – China Evergrande Group is confident the company will “walk out of its darkest moment”, the debt-laden property developer’s chairman said in a letter to staff on Tuesday, as nervous global investors fretted about default risks.
In the letter that coincided with China’s mid-autumn festival, Hui Ka , expressed appreciation for the hard work of employees and said Evergrande will deliver property projects as pledged, fulfil responsibilities to property buyers, investors, partners and financial institutions.
The nation’s second-largest developer, saddled with more than $300 billion in liabilities equivalent to 2% of China’s gross domestic product, is scrambling to raise funds to pay its many lenders and suppliers as it tries to stem a liquidity crisis from tipping it into a collapse.
“I firmly believe that with your concerted effort and hard work, Energrande will walk out of its darkest moment, resume full-scale constructions as soon as possible and achieve the pivotal target of delivering the property projects as pledged,” said Hui.
Hui did not elaborate how the company could achieve these objectives.
Its Hong Kong listed shares last traded down 3% at HK$2.21 around 0318 GMT, having tumbled 84% so far this year. Evergrande’s debt woes have spread turmoil in global financial markets as investors fear contagion could wreak havoc on the world economy.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.