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China debt crunch

Shenzhen city fund records $770m loss on Evergrande investment

Investors holding onto 2017 stakes count costs of support to troubled developer

China Evergrande Group disclosed in early January that it had been ordered to demolish 39 apartment towers at the Ocean Flower Island project on Hainan Island.   © Reuters

HONG KONG -- Investors who injected about $20 billion into China Evergrande Group's main operating unit five years ago are starting to count their losses amid the company's slide into default and restructuring.

Shenzhen Investment, an investment arm of the government of the south China city that is home to Evergrande's headquarters, said in a stock exchange filing on Friday night that it likely fell into the red last year after recording a fair-value loss of about 6 billion Hong Kong dollars ($770 million) on its holdings in Hengda Real Estate, the developer's unit, "mainly due to the considerable drop in the share price of China Evergrande Group."

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