Evergrande Group resumes work on more than 10 projects

BEIJING (Oct 25): China's Evergrande Group said it had resumed work on more than 10 projects in six cities including Shenzhen, reported Reuters.

The report, citing Evergrande's statement on Oct 24 and also its postings on the company's Wechat account , said some of the projects resumed had entered the interior decoration stage while other buildings had recently completed construction.

The post included several photos of construction works on different projects, together with time and date.

The debt-ridden Evergrande, which averted a default with a last-minute bond coupon payment of US$83.5 million (RM345 million) in interest last week, has not disclosed how many of its 1,300 real estate projects across China that will be affected.

The second-largest developer in China has some US$300 billion in liabilities. Highlighting the stresses on its core business, Evergrande also announced on Friday plans to prioritise its electric vehicles business over real estate.

On Aug 31, it said that some projects were suspended due to delays in payment to suppliers and contractors and it was negotiating to resume building.

Last month, Evergrande also promised potential buyers it will complete building of their homes and said that work on one of the world’s biggest football stadiums in the southern city of Guangzhou was proceeding as planned.

With a looming debt crisis, Evergrande’s woes sent shockwaves across the US$5 trillion Chinese property sector, accounting for a quarter of the economy by some metrics, with a string of default announcements, rating downgrades and slumping corporate bonds.

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