Evergrande shares rise on report of bond interest payment
Shares of Chinese property company Evergrande opened up 6% in Hong Kong. The shares opened up after the media reported that the company had made an interest payment before the end of their 30 day grace period. The company missed an $83.5m payment last month and the 30 day grace period following was set to expire on Saturday. If the deadline had been missed, Evergrande would have been in formal default.
The shares of the company bounced back after a fall the previous day. On Thursday, Chinese real estate firm Hopson Development was supposed to buy a 51% stake in the company, but the deal fell through after the companies were unable to agree on terms. The payment is not likely to calm long term concerns about the stability of the company. Evergrande has a second offshore bond payment worth $47.5m due next week.