Evergrande’s Hong Kong unit has paid a $19 million onshore bond coupon due today, prioritizing the domestic market

• China Evergrande’s main Hong Kong unit paid a $19 million onshore bond coupon due Tuesday, Reuters reported.
• This comes as Beijing seeks to calm investor fears over the fallout from a looming debt crisis.
• Evergrande has already missed a series of US dollar bond coupon payments.

Hengda Real Estate Group, the flagship Hong Kong unit of beleaguered China Evergrande, has paid an onshore bond coupon of 121.8 million Chinese yuan ($19 million) due Tuesday, Reuters reported, citing four people with knowledge of the matter.

The news comes on the back of assurances from Chinese officials that Evergrande’s debt crisis will not derail the country’s economy.

On Sunday, Chinese central bank governor Yi Gang told a Group of 30 meeting that China’s economy is “doing well.” However, it faces challenges, including default risks at certain firms, Reuters reported.

On Friday, another China central bank official said the problems from the Evergrande Group crisis are “controllable.”

Evergrande has already missed several rounds of US dollar bond coupon payments.

One of Reuters’ sources said the real-estate giant needs to prioritize paying domestic bondholders as the country’s financial system is on the line.

The developer has another $14.25 million bond coupon payment due at the end of this month.

The company’s CEO, Xia Haijun, was in Hong Kong discussing possible restructuring and sale of assets, Reuters reported last week.

Evergrande was also seeking to sell its Swedish electric vehicle unit and Hong Kong headquarters, the news agency reported.