Evergrande profit surge brings share price gains to almost 400%

Hong Kong

CHINA Evergrande Group, the developer targeted by shortsellers this year for its high debt levels, resumed a run of share price gains after reporting a surge in profit and announcing a shift to a low-debt strategy.

The shares rose as much as 7.2 per cent in Hong Kong on Tuesday.

Evergrande pledged to target net gearing of 70 per cent from 2020, compared with about 240 per cent now, in an earnings briefing in Hong Kong on Monday, where it disclosed a jump in first-half profit. It also said it plans to raise 30 billion yuan (S$6.1 billion) to 50 billion yuan from strategic investors in a third round of fundraising before its back…