Shares in China Evergrande Group are set to open up more than 4% on Monday after the embattled property developer announced it planned to give future priority to its electric vehicles business over real estate.
China Evergrande New Energy Vehicle Group Ltd stock is set to open more than 11% higher.
Evergrande, reeling under more than $300 billion in liabilities, last week appeared to avert default with a last-minute bond coupon payment, buying it another week to wrestle with a looming debt crisis.
Evergrande chairman Hui Ka Yan said late on Friday that the company would aim to make its new electric vehicle venture its primary business instead of property within 10 years.
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Evergrande is struggling with more than $300 billion of debt from a years-long acquisition binge, including into electric vehicles once billed as a rival to Elon Musk’s dominant Tesla brand.
In a statement to the Hong Kong stock exchange, China Evergrande New Energy Vehicle Group said that after careful consideration the company and Haitong Securities had agreed to terminate the agreement to issue RMB shares.