Shares in China Evergrande jumped from four-year lows after the highly indebted property group announced it had resolved a legal dispute with a Chinese bank, reported the Financial Times.
The developer, led by billionaire Hui Ka Yan, is being closely tracked by regulators, investors and rating agencies, which are concerned about the potential for contagion to China’s financial system and systemic risks stemming from Evergrande’s towering debts.
Evergrande’s Hong Kong-listed stock rose 9% on Thursday after the company said its legal quarrel with China Guangfa Bank over the loan had been resolved.
Evergrande’s offshore dollar bonds maturing in 2025 fell to a record low of 47 cents on the dollar on Thursday before pulling back to about 51 cents, Bloomberg data showed.