China Evergrande Group is confident it will “walk out of its darkest moment soon,” the debt-laden property developer’s chairman said in a letter to staff on Tuesday, as nervous global investors fretted about default risks.
In the letter that coincided with China’s mid-autumn festival, Xu Jiayin – known as Hui Ka Yan in Cantonese – expressed appreciation for the hard work of employees and said Evergrande would deliver property projects as pledged, fulfil responsibilities to property buyers, investors, partners and financial institutions.
The nation’s second-largest developer, saddled with more than $300 billion in liabilities equivalent to 2% 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,” Xu said.
Xu, who founded the company in 1996, did not elaborate how the company could achieve these objectives.
Its Hong Kong listed shares last traded down 3% at HK$2.21 at around 0318 GMT, having tumbled 84% 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.
• Reuters with additional editing by Jim Pollard
This report was updated on Sept 21.