Evergrande chairman confident company will 'walk out of its darkest moment'
China Evergrande Group is confident the company will "walk out of its darkest moment", the debt-laden property developer's chairman said in a letter to staff on Tuesday (Sep 21), as nervous global investors fretted about default risks.
In the letter that coincided with China's Mid-Autumn Festival, Hui Ka Yuan expressed appreciation for the hard work of employees and said that Evergrande will deliver property projects as pledged and fulfil responsibilities to property buyers, investors, partners and financial institutions.
The nation's second-largest developer, saddled with more than US$300 billion in liabilities equivalent to 2 per cent of China's gross domestic product, is scrambling to raise funds to pay its many lenders and suppliers as it tries to stem a liquidity crisis from tipping it into a collapse.
"I firmly believe that with your concerted effort and hard work, Evergrande will walk out of its darkest moment, resume full-scale constructions as soon as possible and achieve the pivotal target of delivering the property projects as pledged," said Hui.
Hui did not elaborate how the company could achieve these objectives.
Its Hong Kong listed shares last traded down 3 per cent at HK$2.21 about 3.18am GMT (11.18am, Singapore time), having tumbled 84 per cent so far this year.
Evergrande's debt woes have spread turmoil in global financial markets as investors fear contagion could wreak havoc on the world economy.
Source: www.channelnewsasia.com
