hong kong china evergrande group shares plunged on monday to over 11year lows extending losses as executives try to salvage its business prospects and as default fears grow over a looming deadline for payment obligations this weekevergrande has been scrambling to raise funds to pay its many lenders suppliers and investors with regulators warning that its 305 billion of liabilities could spark broader risks to the countrys financial system if not stabilisedthe stock closed down 102 at hk228 after earlier plummeting 19 to its weakest level since may 2010the companys property management unit dropped 113 while its electric car unit declined 27 movie streaming company hengten net majorityowned by evergrande plummeted 95the stock will continue to fall because theres not yet a solution that appears to be helping the company to ease its liquidity stress and there are still so many uncertainties about what the company will do in case of a restructuring said kington lin managing director of asset management department at canfield securities limitedlin said evergrandes share price could fall to below hk1 if the company is forced to sell most of its assets in a restructuringone of evergrandes main lenders has made provisions for losses on a portion of its loans to the embattled developer while some creditors are planning to give it more time to repay four bank executives told reutersthe developer said on sunday it has begun repaying investors in its wealth management products with real estatepolicymakers are telling evergrandes major lenders to extend interest payments or rollover loans and market watchers are largely of the view that a direct bailout from the government is unlikelythe peoples bank of china its central bank and the nations banking watchdog summoned evergrandes executives in august in a rare move and warned that it needed to reduce its debt risks and prioritise stabilityevergrande is due to pay 835 million interest on september 23 for its march 2022 bond it has another 475 million interest payment due on september 29 for march 2024 notes both bonds would default if evergrande fails to settle the interest within 30 days of the scheduled payment datesin any default scenario evergrande will need to restructure the bonds but analysts expect a low recovery ratio for investors trading of the companys bonds underscored just how dramatically investor expectations of its prospects have deteriorated this yearthe 825 march 2022 dollar bond was traded at 29156 cents on monday afternoon yielding over 500 compared to around 137 at the beginning of year the 95 march 2024 bond was at 264 cents yielding over 80 compared to 146 at the start of 2021goldman sachs said last week that because evergrande has dollar bonds issued by both the parent company and a special purpose vehicle recoveries in a potential restructuring could differ between the two sets of bonds and any potential restructuring process may be prolongedthe companys woes also pressured the broader property sector as well as the yuan which fell to a threeweek low of 64831