(Yicai Global) Jan. 11 -- An insider at China Evergrande Group dismissed a report that the debt-ridden property developer has moved its headquarters back to Guangzhou, the city where it was founded a quarter century ago.

Evergrande’s registered address is still in Shenzhen, the person told Yicai Global yesterday, adding that staff are working at its offices in both cities.

The Paper reported yesterday that the ‘Evergrande’ sign had been removed from the Zhuoyue Houhai Center building in Shenzhen, meaning the homebuilder had moved its head office back to Guangzhou. Evergrande moved HQ to Shenzhen in mid-2017.

Evergrande vacated the Zhuoyue Houhai Center on Dec. 31, when the lease expired, the insider said. Most of the staff who were unwilling to leave Shenzhen were relocated to the company’s own building nearby. The firm’s departure from the Zhuoyue Houhai Center was “just about saving costs,” the person noted.

Once the world’s biggest property developer, Evergrande suffered a liquidity crisis last year and announced on Dec. 3 that it may not be able to meet its obligation to guarantee payment on a USD260 million bond.

Founder and Chairman Xu Jiayin has spent most of his working hours in Guangzhou since October, so many business teams have moved to the Evergrande Center in the city, especially those that directly serve the board.

Evergrande’s shares [HKG: 3333] fell 0.6 percent to finish at HKD1.72 (22 US cents) apiece today. The company lost almost 90 percent of its value last year.

Editors: Tang Shihua, Futura Costaglione