(Yicai Global) July 27 -- Shares in China Evergrande Group dropped further today after the heavily indebted real estate giant said it will no longer honor its special dividend plan.

Evergrande’s stock price [HKG:3333] crashed 13.4 percent to finish at HKD5.81 (USD0.75), its lowest point since May 2017.

Evergrande has decided to cancel its special dividend plan after taking into consideration the current market environment, the interests of shareholders and creditors as well as the company’s future development, the Shenzhen-based developer said today. No details of the promised dividends were given.

The company's stock has halved in value since the start of the year, largely due to market concerns about its ability to shift debt and a series of recent legal and project setbacks. Yesterday, US ratings giant Standard & Poor downgraded the real estate firm's credibility to B- from B+, citing a lackluster outlook and weak fundraising ability.

Evergrande is committed to meeting regulatory borrowing limits, founder Hui Ka Yan said in June. The company had slashed debt by CNY300 billion (USD46 million) as of the end of June from the end of last year to CNY570 billion.

Editor: Kim Taylor