By Gina Lee

Investing.com – China Evergrande Group (HK:) shares were back on an upward trend, with the heavily indebted property developer to settle interest payments on a domestic bond was reached on Wednesday.

The company’s Hong Kong shares jumped 10.57% to HK$2.51 ($0.32) by 12:58 AM ET (4:58 AM GMT). The session saw a 32% increase in shares, which is the highest in over ten years.

China Evergrande’s main unit, Hengda Real Estate Group, said on Wednesday it had “resolved” one coupon payment due on Thursday on its Shenzhen-traded 5.8% September 2025 bond, via “private negotiations”.

The People’s Bank of China also injected a reported CNY90 billion ($13.91 billion) to CNY110 billion into the banking system in a move to assure investors.

Hengda didn’t specify when or how much interest would get paid. The company’s $83.5million in bond interest due this Thursday is not expected to be paid. Hengda did not even mention China Evergrande.

Some investors were cautious because a $47.5 million additional bond interest payment was due next week.

We don’t know the details of how China Evergrande paid its offshore coupon. The payment does not look cash. Chuanyi Zhou, Lucror Analytics credit analyst Chuanyi Zhou cautioned that the payment may miss the coupon on off-shore bonds.

Other investors are more positive that there will be no significant fallout.

“Despite some concern, it looks more like a corporate bankruptcy than something else. It’s a big one, to be sure, but one that can be handled within the system,” Commonwealth Financial Network chief investment officer Brad McMillan said in a note.