By Clarence Leong
Shares of China Evergrande Group rebounded Thursday after the company said it had resolved a dispute with a creditor that fueled concerns about its ability to repay debts.
Evergrande earlier this week accused China Guangfa Bank Co. of abusing legal procedures when a local court granted its request to freeze 132 million yuan ($20.4 million) of assets held by Evergrande units.
Evergrande's statement on Thursday said it has "long maintained good business cooperation" with Guangfa Bank and will continue to strengthen their partnership.
Evergrande's stock rose as much as 11% in morning trade. By midday, it was trading 9.3% higher at HK$7.91, but still down 19% this week. Concerns about the cash-strapped company's ability to repay debts had led to the selloff which dragged the stock to its lowest level since 2017.
Evergrande's Hong Kong-listed units also got a lift. China Evergrande New Energy Vehicle Group Ltd. jumped 26% and Evergrande Property Services Group Ltd. added 4.8%.
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(END) Dow Jones Newswires
July 22, 2021 01:02 ET (05:02 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.