Most stock prices in Asia Pacific started to show a slight recovery in today’s trading session but investors remained vigilant on the current situation regarding Evergrande’s development.
As of 3.33pm, Chinese shares of Evergrande were up 16.30% to HK $ 2.65, however it still remained down more than 80% from the price level recorded in early 2021.
The positive sentiment came after Evergande China's main unit, Hengda Real Estate Group, announced that it would implement coupon payments for 'onshore bonds' scheduled for Thursday.
The total amount to be paid is estimated at $ 35.9 million.
Yet the total amount is not included with the interest collateral to be paid and when the payment will be cleared, just say it has been settled through private negotiations.
Based on the agreement signed with the investors, Evergrande only has a period of 30 days before the agreement will be revoked.
Director of the Institute of New Market Studies at the Hong Kong University of Science and Technology, Donald Low said it was still too early to talk about the solution plans underway.
Analysts also issued a warning that Evergrande's failure to solve the problems it faces will have a major impact on China's economy.
He added that indirectly, it is also likely to give a negative impression to the global financial system.
Following the announcement, it gave investors some reassurance about the company's future after being tied to a debt crisis of more than $ 300 billion.
