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China Evergrande scraps four-year quest for mainland listing

Property company mum on terms under which investors waived repayment deadline

Evergrande China's deal is likely to soothe the concerns of investors and regulators, as its debt levels are considered large enough to shake the country's financial system. (Photo by Nikki Sun)

HONG KONG -- Fears of a looming liquidity crunch at China Evergrande Group have eased after the indebted property company reached a deal to postpone repayments to investors after it abandoned its four-year pursuit of a backdoor listing of its core operations on the mainland.

Evergrande, China's largest property developer, said in a statement late Sunday that it had agreed to a deal with investors in its Hengda Real Estate unit who could have demanded repayment of 130 billion yuan ($19.7 billion) in convertible debt if the listing was not accomplished by Jan. 31.

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