'If one piece of Evergrande's debt is allowed to default, it would trigger questions about all of their remaining debt from investors and the government doesn't want a wider crisis like that,' he said. 'There must be negotiations behind the scenes about a systemic recapitalization (of Evergrande) by state proxies,' said Andrew Collier, managing director of Hong Kong-based Orient Capital Research. The Chinese government has been largely quiet on the crisis at Evergrande in recent weeks.

UBS increased its position by 25% through May, the latest date available in the fund tracker's database showed. read moreД«lackRock added 31.3 million notes of Evergrande's debt between January and August 2021, while HSBC increased its position by 40% through July, according to Morningstar. вЂњWe think investors should remain on the sideline until there is more clarity.вЂќДЇund giant BlackRock and investment banks HSBC and UBS have been among the largest buyers of EvergrandeвЂ™s debt, Morningstar data showed. 'We are uncertain of how far and how strong the ripple effect would be on the housing market and the developer industry,вЂќ analysts at Deutsche Bank said in a recent note. The Hong Kong property sector index (.HSCIPC) rose nearly 3%. 4 developer, and state-backed Greentown China (3900.HK) on Tuesday recouped some of their hefty losses in the previous session. Other property stocks such as Sunac (1918.HK), China's No. Its shares fell as much as 7%, having tumbled 10% in the previous day, on fears its $305 billion in debt could trigger widespread losses in China's financial system in the event of a collapse.

Investors in Evergrande, however, remained on edge. 'I firmly believe that with your concerted effort and hard work, Evergrande will walk out of its darkest moment, resume full-scale constructions as soon as possible,' said Hui, without elaborating how the company could achieve these objectives. In the letter, coinciding with China's mid-autumn festival, the chairman of the debt-laden property developer, also said Evergrande will fulfil responsibilities to property buyers, investors, partners and financial institutions. In an effort to revive battered confidence in the firm, Evergrande (3333.HK) Chairman Hui Ka Yuan said in a letter to staff the company is confident it will 'walk out of its darkest moment' and deliver property projects as pledged. HONG KONG/NEW YORK, Sept 21 (Reuters) - Persistent default fears eclipsed efforts by China Evergrande Group's chairman to lift confidence in the embattled firm on Tuesday, as Beijing showed no signs it would intervene to stem any domino effects across the global economy.ДЄnalysts played down the threat of Evergrande's troubles becoming the country's 'Lehman moment,' though concerns about the spillover risks of a messy collapse of what was once China's top-selling property developer have roiled markets.

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