A crane stands at the construction site of Evergrande Cultural Tourism City, a China Evergrande Group project whose construction has halted, in Suzhou’s Taicang, Jiangsu province, China, on Oct. 22, 2021. (Aly Song/Reuters)
HONG KONG—Shares of China Evergrande Group extended gains to as much as 16 percent on Friday afternoon to the highest since Sept. 30, after the cash-strapped developer once again averted a destabilizing default with a last minute bond payment this week.
As of 0703 GMT, the Hong Kong-listed company was up 12.25 percent at HK$2.84, compared with a 0.2 percent rise in the broader market. The stock has lost 80 percent so far this year.
Evergrande, the world’s most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are dollar bonds.
The latest payments were made at the end of a 30-day grace period that ended on Wednesday, and were the third time in the past month the company has paid up perilously close to a deadline. The bonds had a total of more than $148 million due.
Evergrande has yet to pay the coupons of offshore bonds issued by unit Scenery Journey due on Nov. 6 worth a combined $82.49 million, which also have a 30-day grace period. It also has coupon payments totaling more than $255 million due on Dec. 28.