Evergrande shares rise despite mounting uncertainty over debt revamp plan

China Evergrande Group's shares rose nearly 4 per cent in early trading on Wednesday after their sharp recent declines. The rise came despite growing uncertainty about the cash-strapped developer after Reuters reported that some of its offshore creditors were planning to join a liquidation court petition filed against the company if it does not submit a new debt revamp plan by end of next month.

Evergrande's Hong Kong-listed shares opened down 3.8 per cent at HK$0.38 but reversed losses and were up nearly 4 per cent in early trade.

The stock is still off nearly 25 per cent since Monday after Evergrande said a day earlier it could not issue new bonds as part of its debt restructuring plans because of a regulatory investigation into its main Chinese unit.

The unit, Hengda Real Estate, then said on Monday it had failed to pay the principal and interest for a 4 billion yuan ($547 million) bond due by September 25.