Evergrande’s main unit, Hengda Real Estate Group, announced it would make a coupon payment on its domestic bondholders on time on September 23.
The announcement delays fears of imminent collapse but does not guarantee Evergrande will not default on a later payment.
World markets have been watching for days how Evergrande’s situation unfolds after the company announced it was at risk of defaulting on around $400 billion worth of loans.
Evergrande is the second-largest property developer in China by sales and the most valuable real estate company in the world.
Among its group operations, Evergrande owns a football team, an electric vehicle division, a mineral water brand and also has interests in baby formula and theme parks.
Evergrande borrowed heavily to sustain its growth, and has an estimated debt exposure of more than $400 billion.
Evergrande has not completed an estimated 1.4 million properties it has already sold off-the-plan to domestic buyers.
Earlier this month, media reports emerged that Evergrande was being forced to suspend interest payments on multiple loans due in late September.
Given the size and impact of Evergrande’s financial position, a collapse could cripple the Chinese economy and as a result send shockwaves through every developed economy around the globe.
UBS China property analyst John Lam said Evergrande alone will be unlikely to shake China’s economy, but its situation may change the way property is bought and sold.
“Currently Evergrande alone is not viewed as enough to place pressure on the financial sector; however, other high-cost developers are now being monitored by the team as there is a heightened risk of liquidity issues,” Mr Lam said in a research note.
“These issues pose a growing risk to property sales, construction starts and completions, which in turn are a key driver of steel, cement, copper and aluminium demand growth.”