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China’s debt-ridden Evergrande resumes work on more than 10 property projects

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China Evergrande Group is currently building high-rise apartment blocks at the Riverside Palace development, Taicang in Jiangsu province.

Getty Images| Bloomberg | Getty Images

China Evergrande Group said on Sunday it had resumed work on more than 10 projects in six cities including Shenzhen – a statement that comes after it appeared to avert default with a last-minute bond coupon payment last week.

Evergrande is in deep crisis and has more than $300 billion of liabilities. It hasn’t disclosed the number of projects it had to stop work on in China.

According to the company, some projects had been suspended due to delays in payments to contractors and suppliers. It was also negotiating for a resumption of building.

It posted on Wechat on Sunday that it was resuming work on some projects, while others were in the interior decoration phase.

Evergrande said that the company’s efforts to secure construction would boost market confidence. It included photos of various construction workers, with dates and times stamped.

China’s number two property developer also said last month that potential buyers will be able to complete their home building. He added that the construction of one of the largest soccer fields in the south of Guangzhou, Guangzhou, was moving as planned.

Last week’s move to pay $83.5 million in interest on a U.S. dollar bond has bought Evergrande another week to wrestle with a debt crisis looming over the world’s second-biggest economy.

Evergrande, which highlighted the stress in its core business announced that Evergrande will be giving priority to its electric vehicle business over its real estate business.

Evergrande’s woes echo across the $5 Trillion Chinese property sector. It accounts for quarter of China’s GDP by some metrics. The string of default announcements as well as downgrades of ratings and slumping corporate bond prices have all contributed to Evergrande’s woes.

The global financial markets, concerned about wider contagion, are closely following the country’s debt crisis.

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