Shares In Evergrande Drop Amid Cash Crunch Rumours

Shares in China Evergrande dived 9.5 percent in Hong Kong as the mainland developer battles a crisis of confidence over its financial health.

Investors have continued to dump Evergrande's shares and debt following reports that a leaked document showed it sought government help to avert a cash crunch.

Evergrande told RTHK that its operations are sound and that it recently repaid more than US$10 billion of debt before the deadline of January 31.

The property giant earlier dismissed claims that it warned mainland authorities about a potential cash crunch as "fabricated and pure defamation".

But the statement, which was published on the stock exchange, failed to calm investors.

The Shanghai Stock Exchange suspended trading of three of the companies' bonds because of sharp drops on Friday.