Chinese state media reported that Evergrande avoided a high-cost default with a last-minute coupon payment which allowed the company time to gather funds before it makes another settlement by the Friday deadline.
Evergrande’s chairman Xu Jiayin, motivated investors by announcing its intent to save the company’s rising debts through focusing on electric vehicles instead of buildings.
The chairman presented three key decisions to rectify the company’s reputation: by resuming production to get things done; applying building sales, diminishing the construction of establishments, and focusing on the electric automobile industry within 10 years’ time.
Analysts doubted if Evergrande had the expertise or the resources to embark on the project, as it was getting tougher to engage in China’s growing electric vehicle (EV) industry.
Shanghai-based LMC Automotive Director of China John Zeng said that the company only knew how to purchase and that no one in the industry knew if their technology was reliable given the fact that their strategies were plainly unrefined.
Managing Director for Automotive Foresight consultancy Yale Zhang said, “Even if Xu eventually manages to begin producing EVs, how he would sell them is another question with no clear answer.”
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