China Evergrande Group EGRNF -2.38% mentioned paperwork circulating on-line a couple of company restructuring involving a key subsidiary had been pretend, after they spurred a steep selloff within the Hong Kong-listed real-estate developer’s bonds and shares.
Evergrande is China’s largest property developer by contracted gross sales final yr and Asia’s largest junk-bond borrower. The heavily indebted company is thought for unconventional monetary techniques and for venturing into different enterprise traces equivalent to electrical automobiles.
The corporate’s response to the paperwork got here hours after the Hong Kong inventory market closed on Thursday.
Evergrande’s U.S. greenback bonds due January 2024 had earlier fallen from greater than 93 cents on the greenback to be bid at lower than 88 cents, in accordance with Tradeweb, sending yields hovering to almost 17%.