Shares of New World Development, the heavily indebted Hong Kong property group, jumped as investors welcomed the end of its refinancing talks with banks and the resignation of the founder’s grandson from his remaining board roles.

Shares rose as much as 11 per cent on Wednesday to above HK$6 after the company announced on Monday evening it had secured support from banks to refinance loans of HK$88bn (US$11bn) following marathon negotiations. Hong Kong’s markets were closed on Tuesday for a public holiday.

The refinancing talks were seen as crucial because of New World’s size — with assets totalling HK$427.6bn — and the exposure for major lenders. Bank loans to the company account for 7 per cent of all commercial real estate loans in Hong Kong, according to Barclays analysts.