The company acknowledged the order in a post on WeChat Monday night, but added that it did not affect other buildings in the same real estate project, which involves around 61,000 property owners.
The 39 buildings are part of Evergrande’s giant Ocean Flower Island project in Hainan, where the company has invested nearly $ 13 billion over the past six years.
The shares rose as much as 10% after trading started in the early afternoon, before the rise was reduced. They were last up 1.3%.
In Tuesday’s submission, Evergrande also said that they have achieved an agreed sale of 443.02 billion yuan ($ 70 billion) for 2021. That was a decrease of 39% from 2020 sales figures. Regarding liquidity, the company said it would continue to “actively maintain communication with creditors, strive to address risks and safeguard the legitimate rights and interests of all parties.”
Evergrande – which was China’s second largest real estate developer
s by sale in 2020 – coils under more than $ 300 billion of total commitment.
Analysts have long been concerned that a collapse of Evergrande could trigger greater risk to China’s real estate market, damaging homeowners and the wider financial system. Real estate and related industries account for as much as 30% of the country’s GDP. The US Federal Reserve warned in November that problems in Chinese real estate could damage the global economy.
However, analysts warned that the real estate crisis remains a looming threat to China.