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China Evergrande to net more than $900m from spinoff

Indebted property company seeks to cut outstanding loans with management arm IPO

HONG KONG -- China Evergrande Group, one of the most indebted companies in the world, is set to rake in about $900 million from the spinoff and initial public offering of its property management arm, an important element of its plan to slash borrowings.

The property company is a bellwether for China's leveraged property sector and is widely considered large enough to send ripples throughout China's $50 trillion financial system, driving worries over potential cross defaults on loans from banks and trusts.

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