Evergrande resumes work for over 10 projects to address debt issues
Published: Oct 24, 2021 10:53 PM
Evergrande Group Photo: CFP

Evergrande Group Photo: CFP

Indebted property developer Evergrande has resumed work and construction on more than 10 projects in Shenzhen and five other cities in South China's Guangdong Province to ensure the delivery of buildings, the company said on Sunday.

The announcement came after Evergrande Group Chairman Xu Jiayin said at a meeting on Friday that only through resumption of work and construction can the company ensure building deliveries and address its current debt problems.  

According to a statement on the company's official account on WeChat on Sunday, some projects, including Shenzhen Evergrande City Light, have progressed to the stage of interior decoration, and they will be gradually delivered to buyers. Construction of other buildings like Shenzhen Evergrande City recently finished.

The company added that the all-out push to resume work and construction will shore up market confidence, as China's property market cooled in September due to concerns about the company's possible default.

The Global Times reported on October 10 that consumers from all over the country have set up dozens of online chat groups to urge the developer to resume work on half-finished buildings, after the company said earlier that some projects had been halted due to delayed payments to suppliers and contractors.

Aside from the all-out push to resume work and construction, Xu announced two other moves by the indebted developer to rescue itself on Friday, including the transition from property toward new-energy vehicles within 10 years, and plans to fully implement property sales, while substantially downsizing its real estate development and construction. 

The company has readied funds for a last-minute US dollar bond interest payment, media reports said on Friday, fending off a default on its offshore bond. 

Evergrande's debt crisis has attracted widespread attention from around the world, with some foreign media using the case to hyping up risks in the Chinese housing market and regulations to crack down on housing speculation.

Chinese officials have maintained that risks in China's housing market remain overall controllable despite individual problems that have arisen.

In a sign of continued crackdown on market speculation, The Standing Committee of the National People's Congress, China's top legislature, adopted a decision on Saturday to authorize the State Council, the cabinet, to pilot property tax reforms in some regions, according to a report by the Xinhua News Agency.