Chinese Estates Holdings , the second-biggest shareholder of embattled developer China Evergrande , said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely.
, said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely.
With $305 billion in liabilities, Evergrande is struggling to meet its debt obligations and investors worry that the rot could spread to creditors including banks in China and abroad. China Evergrande stock soared as much as 32% in the biggest daily percentage rise since listing in November 2009, after its unit said on Wednesday it had "resolved" a coupon payment on an onshore bond.Chinese Estates, which owned about 6.50% of Evergrande's equity capital as of Sept. 10 according to Refinitiv Eikon data, said it has mandated a sale of all or part of the remaining 5.66% Evergrande stake either on the market or through block trades.
Chinese Estates said it had already sold 108.91 million shares, or 0.82%, of Evergrande's issued share capital between Aug. 30 and Sept. 21 for HK$246.5 million .