Evergrande will reduce debt to under 600b yuan

Business | Staff reporter 4 Jun 2021

China Evergrande (3333) chairman Hui Ka-yan has pledged to reduce the company's debt to under 600 billion yuan (HK$727.94 billion) by the end of this month, as investors dumped their shares and bonds on fears of regulator's investigation.

The property tycoon said yesterday that the company, whose leverage ratios are still much higher than Beijing's minimum requirement, will meet at least one of the "three red lines" by the end of June. Evergrande said it has lowered its interest-bearing debt by nearly 300 billion from March 2020.

Evergrande's shares fell 5.25 percent to HK$11.18, nearly a one-year low. Its subsidiary Evergrande Property Services (6666) fell to 4.60 percent to a five-month low, after shareholders sold 270 million shares for HK$2.65 billion earlier this week.

Mainland financial regulators have launched a probe into transactions between Evergrande and Shengjing Bank (2066), according to mainland media Caixin. Evergrande earlier said it plans to reduce the borrowings to no more than 350 billion yuan by June 2023.

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