By midday, Evergrande’s shares were up nearly 16% after jumping more than 60% early in the session.
Evergrande is the world’s most heavily indebted real estate developer and is at the center of a property market crisis that is dragging on China’s economic growth.
The company’s stock was suspended from trading last week as it confirmed Chinese police were investigating its chairman,
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Evergrande is the world’s most heavily indebted real estate developer and is at the center of a property market crisis that is dragging on China’s economic growth.
Last month, Evergrande said in a filing that it had to delay a proposed debt restructuring meeting with creditors as “sales of the group have not been as expected by the company.”
Evergrande had also said last week that it could not issue new debt as its subsidiary,
China’s property sector is an important pillar of China’s economy. It has swooned since regulators tightened rules on borrowing in the property sector in 2020. That led to Evergrande defaulting on its debt.
Last month, a former Chinese official estimated that even China’s 1.4 billion population would not be able to fill all the vacant homes across the country.
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