(Yicai Global) Sept. 30 -- Shares of China Evergrande Group surged after the country's largest real estate developer said that some of its unit's investors have accepted the firm's postponed restructuring and listing deadlines.

Evergrande's stock price [HKG:3333] jumped 15.9 percent to HKD19.12 (USD2.50), the highest since Aug. 31.

Strategic investors who hold CNY86.3 billion (USD12.7 billion) of Evergrande Real Estate Group's equity have penned agreements to change to common stock, which means that ERE doesn't need to repurchase them, the Shenzhen-based parent said in a statement yesterday. 

The group of investors who agreed to the deal include Suning Holdings Group's chair Zhang Jindong, Amer International Group's chief Wang Wenyin, and Grandland Investment Holding's chair Ye Yuanxi.

But there is more. The agreements leave a remainder of CNY43.7 billion to be further sealed. A tally of CNY15.5 billion has already been negotiated, according to the parent. Without a deal for the rest, the firm would need to buy back the equity.

Backdoor Listing With a SOE Twist

The whole matter originated from an investment program that included milestones to be reached, or otherwise, compensations for the investors, which would deepen the property developer's debts. 

According to a plan that originated in 2016, ERE should conclude its acquisition of Shenzhen Special Economic Zone Real Estate & Properties Group by the end of January 2020 to go public on the mainland via a backdoor listing. However, the deadline was delayed by a year when Evergrande penned further deals with more investors.

Evergrande's stock prices and corporate bonds and its affiliates have fluctuated significantly amid reports of delays, as well as leaked documents. The latest downward spiral was set in motion by a letter, dated Sept. 25, in which the developer purportedly was seeking the support of the Guangdong provincial government for a unit’s listing. Evergrande labeled it as a fake. 

SSEZREPG, whose shares have been suspended since September 2016, said on Sept. 27 that the restructuring plan needs further communication due to the complex nature of state-owned enterprises' structures. 

Editor: Emmi Laine