(Yicai Global) July 25 -- Shares in Country Garden bounced back today after the Chinese real estate developer said that it was meeting its debt obligations on time, despite a recent sharp drop in its stock and bond prices as rumors swirled that the company was about to go bust.

Country Garden’s stock price [HKG:2007] surged 17.4 percent to HKD1.48 (USD0.20) as of 2 p.m. today.

Founder Yang Guoqiang and his daughter Yang Huiyan, who is chair of the firm, are working as normal in the company headquarters in Foshan, southern Guangdong province, The Paper reported yesterday.

There is no undisclosed information that could cause any significant fluctuations in Country Garden’s bond prices in the near future, the report added.

Recently there were rumors that father and daughter had fled abroad, and that the developer was on the brink of collapse.

This hearsay led to a sharp drop in the price of its stock and several of its bonds. Yesterday the shares slumped 8.7 percent and on July 21 they tumbled 5.4 percent. And its bond “21 Bidi 03” plunged 23 percent last Friday and plummeted another 31.8 percent yesterday.

Country Garden has secured dual-currency financing of HKD3.5 billion (USD459 million) and USD389 million from Bank of China (Hong Kong) and several other financial institutions, the developer said on July 20.

Country Garden will deliver 700,000 houses this year, it said on its WeChat account on July 21. In the first six months, it handed over 278,000 units with a total area of 34.3 million square meters, the most in the sector.

Editor: Kim Taylor