China Evergrande 2016 core profit surges 89 pct amid property boom

HONG KONG, March 28 (Reuters) - China Evergrande Group

, the nation's biggest property developer by sales

value, on Tuesday reported an 89 percent rise in 2016 core

profit due to a booming real estate market that saw a strong

increase in sales prices and volumes.

Core profit, which excludes revaluation gains, was 20.81

billion yuan ($3.02 billion).

Net profit rose 1.6 percent to 17.62 billion yuan. Perpetual

capital instruments - high-interest debt "disguised" as equity -

rose 49 percent to 112.9 billion yuan.

Evergrande shares were up 2.9 percent ahead of the results

compared with a 0.6 percent gain in the broader Hong Kong market

.

($1 = 6.8834 Chinese yuan renminbi)

(Reporting by Clare Jim; Editing by Anne Marie Roantree and

Christopher Cushing)