24 Oct 2021
China’s Evergrande Resumes Construction on Suspended Projects
The Index Today
According to a statement issued after completing a last-minute bond coupon payment, China’s Evergrande will resume work on 10 projects across six different cities in the nation.
The debt-ridden firm has not yet revealed information on the number of projects it had to suspend due to delayed payments. Some projects were mainly affected due to lack of funding and non-payment to contractors.
On a recent post made on Wechat, the company announced it will begin work on a number of halted projects and is close to the interior design phase whereas some projects are still in the initial construction phase. Evergrande has stated it hopes to see market confident grow as it guarantees continuation of construction on projects.
The company is also working on the development on one of the largest football stadiums in the world. Evergrande aims to improve its position in the market by offering pictures of resumed projects with stamped time and date. Alongside real estate, the company has announced plans to prioritize electric vehicle business in hopes of diversifying its core businesses.
Financial markets across the globe are eyes glued on Evergrande as it could affect stocks and financial institutions with its downgrades.