China Evergrande's EV unit shares surge on business shift, Evergrande sinks

FILE PHOTO: The company logo is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song

HONG KONG (Reuters) – Shares in China Evergrande Group’s electric vehicle (EV) unit rose as much as 5.8% early on Tuesday, extending gains from the previous day as the cash-strapped developer said it would prioritise the growth of its EV business.

China Evergrande, however, reversed early gains and fell more than 6%.

China Evergrande, reeling under more than $300 billion in liabilities, averted a costly default last week with a last-minute bond coupon payment, buying it more time to head off a looming debt crunch with its next major payment deadline on Friday.

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