HONG KONG (Reuters) – Shares of China Evergrande Group <3333.HK>, the nation’s No.2 property developer, dropped as much as 4.6% on Friday in early trade, on market concerns over its cashflow.
The company has pleaded for government support to approve a restructuring plan that has languished for four years, warning it faces a cash crunch that could lead to systemic risks, sources told Reuters on Thursday.
Evergrande said late on Thursday a document circulating online about a reorganisation of its subsidiary Hengda Real Estate was a fabrication and defamation, and said it has reported the matter to public security authorities.
(Reporting by Clare Jim; Editing by Tom Hogue)
