By Gina Lee

Investing.com – Property developer China Evergrande On Monday Group (HK:), over the announcement that it would appoint a state asset manager unit official, China Cinda Asset Management Co. Ltd.

The company’s Hong Kong shares jumped 7.26% to HK$1.92 ($0.25) by 11:43 PM ET (4:43 AM GMT), after surging more than 13% earlier in the session.

China Evergrande announced Sunday it will appoint two additional board members. The first is Liang Senlin (non-executive director), chairman of China Cinda Holdings Co. Ltd.

Shawn Siu (chairman of China Evergrande New Energy Vehicle Group Limited) is the second. In October 2021, the company stated that its priority would be to grow its electric vehicle business rather than its core real-estate operations.

They were appointed in connection with the establishment of a China Evergrande Risk Management Committee, December 2021. The committee’s members include top officials from various state agencies including China Cinda Asset Management.

China Evergrande still has more than $300 billion of liabilities. This includes nearly $20 billion of international bonds. All of these are deemed in default following a series of late payments.

China Evergrande’s assets will likely be taken over by state-owned firms as part of a restructuring led by the Guangdong provincial government, and the appointment is a reassuring sign that restructuring is progressing.

Shares also got a boost from Friday’s report from REDD, which said the provincial government was aiming to release a framework debt restructuring plan for the company by March 2022. The report also stated that the government plans to sell off the offshore assets of the company to repay foreign debt. This will increase foreign lenders’ chances of recovering some funds.