China Evergrande shares falls on concern over cash crunch

[HONG KONG] Shares of China Evergrande Group, the nation's No.2 property developer, dropped as much as 4.6 per cent on Friday in early trade, on market concerns over its cashflow.

The company has pleaded for government support to approve a restructuring plan that has languished for four years, warning it faces a cash crunch that could lead to systemic risks, sources told Reuters on Thursday.

Evergrande said late on Thursday a document circulating online about a reorganisation of its subsidiary Hengda Real Estate was a fabrication and defamation, and said it has reported the matter to public security authorities.

REUTERS

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