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Evergrande's bond payment promise eases stock market jitters

Property developer to pay interest on yuan debt but silent on dollar borrowing

The China Evergrande Centre in Hong Kong: Uncertainty over the future of the heavily indebted property developer is shaking global stock markets.   © AFP/Jiji

SHANGHAI -- A surprise announcement that troubled property developer China Evergrande will make a key bond payment on time this week helped sooth jittery investors on Wednesday, though analysts warn the company remains in a "precarious" position.

Evergrande's main unit, Hengda Real Estate Group, said in a filing to the Shenzhen exchange on Wednesday that it will pay interest due on a 40 billion yuan ($6.2 billion) bond on time on Thursday.

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