Evergrande denies bankruptcy, reorganization rumors

China Evergrande Group, one of the country's leading developers, has denied rumors about its bankruptcy and reorganization, claiming they were "totally untrue", Beijing Daily reported.

At present, Evergrande did face unprecedented difficulties, but it will fulfill its responsibilities for its enterprises, resume work, production and normal operation, and safeguard customers' legitimate rights and interests, the company said in a statement on its website late Monday night.

In another separate statement filed with the Hong Kong stock exchange on Tuesday, Evergrande said two of its subsidiaries had failed to discharge guarantee obligations for 934 million yuan worth of wealth management products issued by third parties.

That could "lead to cross-default", which would "have a material adverse effect on the group's business, prospects, financial condition and results of operation."

In order to solve the repayment problem in wealth management products, Evergrande provided three solutions for investors, including cash payment by installments, and using housing, apartments, office buildings, shops and parking spots as repayment assets.

Evergrande Group Chairman Xu Jiayin said last week the company will ensure the repayment of due wealth management products as soon as possible, and "not a penny less".

Shares of the company fell nearly 9 percent early on Tuesday, and its shares fell 11.57 percent or HK$0.39 to trade at HK$2.98 at 2 pm.