Evergrande said that its total borrowings dropped ~15% to CNY 570bn ($88.3bn) since March, in-line with its target. Its debt has fallen ~20% from $110bn at end-December 2020 and the Chinese developer hopes to meet one of the three red-lines by the end of the month. “Any misstep could intensify market panic, and its liquidity chain is very fragile… Under the current policy and market environment, it’s very difficult. Evergrande’s deleveraging road could be long and painful.” said Deng Hao, CEO of Beijing GEC Asset Management. Separately, a supplier of Evergrande, Skshu Paint said in an exchange filing that of the CNY 51.4mn ($8mn) owed by Evergrande’s units as of March 31, only CNY 2.25mn ($350,000) has been recovered by May 31. Evergrande’s bonds fell slightly after the news, but recovered after the developer told Reuters that all the commercial bills to Skshu Paint have been fully repaid.

Evergrande’s dollar bonds were stable – its 9.5% 2024s were at 71.38 and its 8.75% 2025s at 67.97.

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