Cash-strapped developer China Evergrande Group said on Tuesday a significant drop in its property sales would continue this month due to concerns over its debt, which is likely to further deteriorate its liquidity and cash flow.
The group is engaged in discussions with potential investors to sell some of its assets, but it has made no “material progress” so far, it said in a statement to the Hong Kong stock exchange,
The company blamed “ongoing negative media reports” for dampening investor confidence, resulting in a further decline in sales in September.
Angry investors gathered around Evergrande’s headquarters in Shenzhen on Monday to demand the firm repay loans and financial products.
The protest comes amid worries the country’s most indebted developer, with liabilities of 1.97 trillion yuan ($305 billion), will be unable to repay investors and that its debt woes could pose systemic risks to China’s financial system.
The company said on Monday that it was beset by “unprecedented difficulties” but denied speculation that it was facing bankruptcy.
(Reporting by Miyoung Kim; Editing by Christopher Cushing & Shri Navaratnam)