(Bloomberg) -- China Evergrande Group has begun a process to identify its pool of bondholders, seeking clarity on the investor base of its debt obligations in a key step toward restructuring.

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The embattled property developer's risk management committee also plans to hire additional financial and legal advisers to help address its debt stress and creditor demands. The announcement came a day after a bondholder group said Evergrande had failed to substantially engage with it on restructuring efforts.

Country Garden Holdings Co., China's largest developer by sales, is raising HK$3.9 billion ($500 million) in a convertible bond sale to refinance offshore debt coming due within a year.

Country Garden's latest fundraising led to contrasting reaction among bond and stock investors. The developer's 3.3% dollar note due 2031 climbed 2 cents to 80.1 cents on the dollar, according to Bloomberg-compiled prices, on pace for its highest close in more than two weeks. But its shares fell as much as 6.3% in Hong Kong as a gauge of Chinese developers shed 1.1%.

Key Developments:

• Evergrande Offshore Bondholders Receive Identification Notice

• China Builder Country Garden Sells $500 Million Convertible Bond

• Evergrande to Hire Advisers on Debt Risks, Creditor Demands

• China Paper Calls For Flexible Policy on Property Presale Funds

• China Banks Accelerate Approval of Mortgage Loans: Sec. Journal

• Evergrande Offshore Bondholders Criticize 'Opaque' Restructuring

Evergrande Offshore Bondholders Receive Identification Notice (11:13 a.m. HK)

China Evergrande Group has kicked off a bondholder identification exercise among some offshore creditors, according to two holders of the developers' dollar notes who received the notice, in what is typically a key step in a company restructuring.

The notice was received this month, according to the holders who are not authorized to disclose private details of their portfolios. Officially identifying bondholders is typically a key phase in a restructuring, as a borrower seeks clarity on its investor base and prepares for future communication.

Kaisa's Yuan ABS Sale Plan Terminated (10:58 a.m. HK)

Kaisa Group Holdings Ltd.'s planned 520 million yuan asset-backed securities issuance has been terminated, according to disclosure on the Shenzhen Stock Exchange's website, without offering any reason. The bourse started its review of the deal on June 29.

China High-Yield Dollar Bonds Rise 2-4 Cents, KWG Climbs (10:06 a.m. HK)

Chinese developer high-yield dollar bonds rose as much as 4 cents on the dollar Friday morning, according to credit traders. KWG Group Holdings Ltd.'s 7.4% note due 2024 climbed 5.4 cents to 59.8 cents, set for its highest closing price in more than a week.

Country Garden Sells $500 Million Convertible Bond (9:07 a.m. HK)

Country Garden's convertible bond sale comes amid a spreading crisis in the real estate sector. The Foshan-based company is selling bonds due 2026 with a 4.95% coupon, according to a Hong Kong exchange filing.

The firm's shares and dollar bonds were hammered last week on fears that a reportedly failed fundraising effort may be a harbinger of waning confidence.

China Paper Calls For Flexible Policy on Property Presale Funds (8:14 a.m. HK)

Local authorities can consider adjusting their policies on the use of property presale proceeds to stabilize the housing market, state-run Securities Times said in a commentary.

The policy should be adjusted in a flexible manner based on each city's own situation, the report added.

Evergrande to Hire Advisers on Debt Risks, Creditor Demands (8:12 a.m. HK)

The developer's risk management committee plans to engage China International Capital Corp. and BOCI Asia Ltd. as financial advisers, and Zhong Lun Law Firm LLP as a legal adviser, Evergrande said in a stock exchange filing.

On Thursday, a a bondholder group said Evergrande had failed to substantially engage with it on restructuring efforts. The group will "seriously consider enforcement actions" to protect investors' interests.

China Banks Accelerate Approval of Mortgage Loans: Sec. Journal (7:41 a.m. HK)

Banks in major cities from Beijing to Shanghai and Chongqing have accelerated approval of mortgage loans, China Securities Journal reported Friday. It now takes some banks only about a month for such approvals, much faster than before, the state-run newspaper said, citing officials at banks and real estate brokers.

Banks in some cities like Shenzhen have already cut their mortgage rates in response to the latest reduction in banks' five-year loan prime rate Thursday, the report added.

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