The company acknowledged the order in a post on WeChat on Monday night, noting that it did not affect other buildings in the same property project, which involve some 61,000 property owners.
The 39 buildings are part of Evergrande’s gigantic Ocean Flower Island project in Hainan, in which the company has invested nearly $13 billion over the last six years.
Shares surged as much as 10% after trading started in early afternoon, before paring gains. They were last up 1.3%.
In Tuesday’s filing, Evergrande also said it has achieved contracted sales of 443.02 billion yuan ($70 billion) for 2021. That was down 39% from 2020’s sales figure. And regarding liquidity, the company said it would continue to “actively maintain communication with creditors, strive to resolve risks and safeguard the legitimate rights and interests of all parties.”
Evergrande — which was China’s second largest property developer
s by sales in 2020 — is reeling under more than $300 billion of total liabilities.
Analysts have been long concerned that a collapse by Evergrande could trigger wider risks for China’s property market, hurting homeowners and the broader financial system. Real estate and related industries account for as much as 30% of the country’s GDP. The US Federal Reserve warned in November that trouble in Chinese real estate could damage the global economy.
But analysts warned, though, that the real estate crisis remains a looming threat for China.