(Yicai Global) Sept. 28 -- Evergrande Group's stock price soared today, erasing all of last week's losses, after the Chinese real estate developer moved to bolster investor confidence.

The Shenzhen-based company's shares [HKG: 3333] climbed 20.6 percent to close at HKD16.62 (USD2.10) each. They rose as much as 23.4 percent in intraday trade.

The stock lost 9.5 percent on Sept. 25 after a letter purportedly from the developer seeking the support of the Guangdong provincial government for a unit's listing circulated online the day before. Evergrande decried the document, which warned of a potential liquidity crisis and debt default, and labeled it as a fake.

In the 24 years since the company was formed, Evergrande has borrowed funds 20,523 times without any late payment of interest or principal, it said in one of three statements updating investors on progress in reducing its debt.

The company's interest-bearing liabilities have fallen by about CNY53.4 billion (USD7.84 billion) since the end of March and stood at about CNY1.48 trillion (USD217.3 billion) as of June 30, it said, while sales jumped 11.4 percent to CNY504.9 billion in the January to September period from a year earlier. At the end of June, the firm had a cash balance of CNY204.6 billion, and all of its 866 projects were under construction across China.

"Evergrande is operating normally and is sound financially," it added.

The firm had overall debt of CNY1.98 trillion, with the balance of cash and cash equivalents about CNY150 billion at the end of June, according to its semi-annual report.

Interest-bearing liabilities had reached CNY835.5 billion (USD122.5 billion) as of June 30, according to the online letter, making Evergrande the world's most indebted property company. Evergrande dismissed the document, calling it "fabricated and pure defamation," and said it had reported the matter to the police

Evergrande Auto [HKG: 0708] also closed 20.6 percent higher today at HKD16.62 in anticipation of its listing on Shanghai's Nasdaq-style Star Market.

Editor: Peter Thomas