HONG KONG (Reuters), a Chinese developer Shimao Group’s flagship unit stated it would use its own capital for onshore bond payments. The company is also in negotiations to sell off its hotel and commercial assets.

Shanghai Shimao Co stated that its 38 billion-yuan ($5.96 trillion) annual sales goal will prove difficult as the sales for the first 11 months had been 28.2 billion.

On Monday, the firm made public comments to investors via a filing.

Shimao’s shares and debt fell sharply this month due to worries about a asset sale, cancelled apartment deals and downgrades from rating agencies regarding increased financing risks.

Shanghai Shimao was also a source of concern after it stated earlier that it had sold the property management business it owned to Shimao Services at 1.7 billion yuan ($267m), a value some analysts believe is higher than average.

In Monday’s filing, the firm stated that the Proceed is to develop and operate a commercial complex, not repayment of debt.

Separately Shimao Services (the group’s property-management arm) stated that in filing Friday, it is still operating smoothly and won’t do any major asset disposals or acquisitions with the parent company over the next six-months.

Shimao Group’s shares rose by more than 2 percent on Tuesday. Shanghai Shimao dropped 2%.

Shimao Group told investors that its November sales would reach 290 billion Yuan because of tightening national credit. It also stated it was open to selling commercial and hotel assets, if the prices are good.

($1 = 6.3721 renminbi)