By Gina Lee

Investing.com – China Evergrande Group (HK) must pay interest on a dollar bonds in order to avoid a formal default and meet deadlines.

The developer’s Hong Kong shares rose 4.26% to HK$2.69 ($0.35) by 12:17 AM ET (4:17 AM GMT), after jumping as much as 7.8% earlier in the session.

Reuters confirmed a Securities Times article that said that China Evergrande remitted $83.5million in coupon payments Thursday to a Citibank trustee. This means the company can pay all bondholders prior to the end of the 30-day grace period that expires on October 23rd.

The payment was made in full and investors felt relief.

A Hong Kong-based restructuring lawyer who represented bondholders stated to Reuters that the firm seems to have avoided short-term default.

China Evergrande has to still make the coupon payments for its $280 million dollar bonds of Sep. 23, Sep. 29 & Oct. 11.

China Evergrande needs to restructure their debt. This payment might be a way for them to get some sort of buy-in with stakeholders before the heavy work needed on the restructuring,” said the lawyer.

Next payment deadline: Oct. 29, after the 30-day grace period from Sep. 29 expires.

Other investors found the news to be a pleasant surprise, considering that default was widely anticipated.

“There are many coupon payments due ahead. James Wong, GaoTeng Global Asset Management Ltd Portfolio Manager for China Evergrande, told Reuters: “If China Evergrande makes payment this time I don’t understand why it wouldn’t make the next.”