'Great Wall' Evergrande shows signs of recovery?
Evergrande Group China's shares rose on Friday after developer companies with the world's largest debt received approval from local bond holders to postpone payments for one of its bonds.
The group has reached agreement with bondholders on Thursday to postpone the payment of redemption and bond coupons ending January 8 for 6 months worth US $ 707.52 million or 4.5 billion yuan. According to Kingston Lin, the Managing Director of the Asset Management Department at Canfield Securities Ltd, they have anticipated the approval as bondholders did not want to break the relationship with Evergrande as they hope the problem of the world's largest debt company will definitely be completed.
Evergrande shares grew $ 1.2 during the session, overcoming a decrease of 0.2% in Hang Sen's mainland property index.
Meanwhile, China Evergrande New Energy Vehicle Group Ltd also rose by 8.1%.
Earlier, Evergrande struggled with a liability of US $ 300 billion and an international bond of US $ 19 billion which sparked cross-default after passing the deadline last month.
Now, the main focus of Evergrande is seen working on avoiding its local debt default which will complicate its political restructuring.
