Evergrande shares rise after day-long trading suspension

Shares in embattled Chinese property giant Evergrande rallied on Tuesday after a day-long suspension, as the company confirmed it had been ordered to demolish part of a resort in Hainan province.

China's property firms have struggled in the wake of Beijing's drive to curb excessive debt in the real estate sector as well as rampant consumer speculation.

Evergrande confirmed on Tuesday that it had received orders to tear down 39 buildings at the Ocean Flower Island development in the southern Chinese province. The decision came from authorities on December 30 and only affected one plot of land under development, the company said in an announcement to the Hong Kong stock exchange.

"The company will actively communicate with the authority in accordance with the guidance of the decision letter and resolve the issue properly," the announcement read.

The company's shares climbed as much as 10 per cent soon after opening for the afternoon session in Hong Kong before settling back to end 1.26 per cent up at HK$1.61.