(Yicai Global) Feb. 2 -- Shares of China Evergrande Group jumped after the real estate developer said it will offer promotions online this month, cutting the price of residential properties by 25 percent.

Evergrande [HKG: 3333] climbed as much as 4.5 percent today in Hong Kong before closing 1.8 percent higher at HKD15.48 (USD2). The benchmark Hang Seng Index added 1.2 percent.

Property buyers can make a deposit of just CNY3,000 (USD465) on Evergrande's online platform and get a 25 percent discount on the final price, the Shenzhen-based company said in a statement yesterday. The firm is also offering people a 1.5 percent to 2 percent commission if someone buys based on their recommendation.

Evergrande was the first Chinese property developer to start selling homes online. It also ran promotional campaigns during the coronavirus outbreak last year, including similar offers of commission.

As many as 21.62 million real estate agents signed up to Evergrande’s brokerage platform, FCB, which has handed out CNY16.2 billion (USD2.5 billion) in commissions. FCB has encouraged over 20 million prospective buyers to visit residential properties and its annual transactions reached CNY1.2 trillion (USD185.9 billion) last year.

Evergrande’s sales rose 20 percent to CNY723.3 billion (USD112 billion) last year from 2019, placing it second only to Country Garden. It targets CNY750 billion this year. 

The firm’s balance of interest-bearing liabilities was CNY716.5 billion as of the end of 2020, down CNY157.8 billion from last March. It aims to trim that by another CNY150 billion this year. 

Editor: Tom Litting