ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
China debt crunch

Evergrande sells stake in regional lender to shore up finances

Shengjing Bank says local government will gradually increase ownership

China Evergrande Group is working to boost its finances and alleviate a liquidity crunch.   © Reuters

HONG KONG -- China Evergrande Group, the world's most indebted property developer, raised 1 billion yuan ($154 million) by selling a part of its stake in regional lender Shengjing Bank to units of a city government which is expected to further increase its holdings.

Shengjing Bank said in a statement on Wednesday that Evergrande sold 166.67 million shares representing a 1.9% stake at 6 yuan each to two state-backed units of northeastern Shenyang city. The bank's board also resolved to support the local government to increase its stake gradually and "adjust the equity structure" to become a government bank.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more