China Evergrande New Energy Vehicle Group faces the risk of losing assets such as land and equipment, the company said on Tuesday, as local administrative bodies demand repayment of 1.9 billion yuan ($261.91 million) in subsidies by its units.
Shares of China Evergrande Group's electric-vehicle unit surged, fueled by optimism that some businesses may survive despite the property giant's liquidation.
China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year.