HONG KONG Reuters - Shares of Evergrande plunged over 15% on Monday, extending losses as investors take a dim view of its business prospects with a fast approaching deadline for payment obligations this week.
At 0245 GMT, the stock was down 14.6% to HK $2.17, the lowest since Oct 2011.
The company's electric car unit dropped over 8%, while the property manager unit declined by 2%. Movie streaming company Evergrande, formerly owned by Hengten Net, dropped 10%.
Evergrande has been scrambling to raise funds to pay its many investors, regulators warning that its $305 billion of liabilities could spark broader risks to the country's financial system if not stabilised.
One of Evergrande's main lenders made provisions for losses on a portion of its loans to the embattled developer, while some creditors are planning to give it more time to repay, four bank executives told Reuters.
The developer said on Sunday that it has begun repaying investors through its wealth management products with real estate.
Policymakers are telling Evergrande's major lenders to extend interest payments or rollover loans, and market watchers are largely of the opinion that a direct bailout from the government is unlikely.
Evergrande is due to pay $93.5 million interest in its March 2022 bond on Sept 23 for its eight future, m-year bond and $300,000 less charges.
It has another $47.5 million interest pay due on 29 Sept for the March 2024 notes. If Evergrande fails to pay interest within 30 days, the bonds will default.