China Evergrande agrees to sell 20% of the shares
Shengjiang Bank buys - stocks rise.

China Evergrande Group (HK: 3333) has agreed to give a 20% stake in Shengjing Bank Co Ltd (HK: 2066) for CNY 10 billion ($ 1.54 billion) to the local government of Shenyang Selling.
The developer's shares rose 9.36% to HK $ 2.92 ($ 0.38) in Hong Kong through 1:24 AM ET (5:24 AM GMT) after previously rising over 10%. According to a notice on the Hong Kong Stock Exchange, the company will sell approximately 1.75 billion non-publicly traded domestic shares in Shengjing Bank to Shenyang Shengjing Finance Investment Group Co. at 5.7 yuan each.
Shengjing Bank ceased trading after trading at HK $ 7 on Tuesday.
China Evergrande's 2022 dollar bond was quoted at 25.3 cents per dollar, according to Bloomberg, while the rate of the 2025 bond was unchanged at 23.5 cents.
The company's stake in Shengjing will decrease to 14.57% upon completion of the transaction. Previously, the company had sold a stake in the lender in August 2021 that grossed around CNY 1 billion.
China Evergrande Chairman Hui Ka Yan is under increasing pressure to spin off and sell assets in an attempt to reduce the company's massive debt. The original 36% stake in Shengjing Bank was one of the company's most valuable financial assets, valued at approximately $ 2.8 billion.
However, the value of this asset has recently declined as regulators increased their oversight of businesses such as B. have tightened preferential loans and bond purchases between banks and their largest shareholders. The sale is also unlikely to do little to lift China Evergrande out of its debt troubles. The company is due to make a $ 47.5 million coupon payment Wednesday after missing an interest payment on a bond the previous week.





