By HUANG Yu

Evergrande has abandoned its attempt to offload 50.1 percent of its property services unit onto rival Hopson Development Holdings for HK$20 billion (US$2.6 billion), the company said in an announcement on October 20.

Evergrande said Hopson Development hadn’t met the preconditions to make an offer. Hopson pointed the finger back at the heavily indebted property giant, suggesting Evergrande had changed payment terms agreed on October 1.

According to that agreement, Hopson should first pay off Evergrande Property Services’ debts, including huge sums owed to Evergrande itself, and then pay the balance directly to Evergrande. Hopson, for whatever reason, appears to have shied away from settling directly with Evergrande but claims to be still willing to continue the acquisition.

Evergrande has made no progress in selling other assets except for its 20-percent stake in Shengjing Bank, worth US$1.5 billion. The group gave no guarantee that it would meet its financial obligations, with more than US$300 billion of debt ready to default. The 30-day grace period ends on October 25, at which point it might be time for Evergrande to pay up or shut down.

Central Bank President YI Gang, said Evergrande's risks were controllable and authorities would take measures to stop the crisis from infecting other real estate companies or the finance industry. Shares in Evergrande and its property services unit have been off the market since the attempted takeover was announced.