The founder of Chinese construction company Evergrande, Xu Jiayin, today demanded that the pending construction work the group is building in China be resumed by the end of this month.

In a statement, Xu explained that construction has already been reactivated on 668 of the company's 706 real estate developments. The remaining 38 should resume construction by the end of this month.

Among the 668 projects mentioned, there are 62 that have not yet reached "normal levels" of construction pace. Xu also set a limit for them to do so within the next 30 days.

The executive demanded "every effort" to guarantee the delivery of the buildings, assuring that this is the "only way" to "satisfy the owners, resume sales, reactivate operations, and tackle all kinds of debts."

With liabilities of over $300 billion, the Evergrand group is emblematic of the liquidity crisis affecting China's real estate sector. The construction company has already defaulted on debt securities issued across borders.

The Chinese authorities have intervened in the company, which announced last January that it will submit a "preliminary restructuring proposal" to its creditors.

The conglomerate suspended trading in its Hong Kong shares in March, has not reported its 2021 or first-half results for this year, and faces a liquidation action filed by a foreign creditor, the hearing of which has been postponed until November 28.

Last year, Chinese regulators began requiring construction companies to cap liabilities to assets ratio at 70% and limit net debt to assets to 100%, sparking a liquidity crisis in the sector, which was exacerbated by Covid-19 countermeasures.

Delays or stoppages in the construction of apartments sold before completion have led thousands of buyers to stage a "mortgage boycott," refusing to continue paying the bank the installment of the property.

The Chinese government has reiterated that the priority goal is for builders to keep their word and deliver the completed properties to buyers, something they have also urged banks to collaborate on by providing them with sufficient liquidity to achieve this goal. (Notícias ao Minuto)