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China Evergrande Gets Notice for $4.5bn from Shengjing Bank

China Evergrande said this week it has received a notice of enforcement from Shengjing Bank for unrecoverable funds totalling 32.595 billion yuan ($4.48 billion)

Trading in China Evergrande and its property and EV units was suspended on Thursday amid concern that the group may face liquidation.
The logo of China Evergrande is seen at its former office in Hong Kong. People moved to withdraw their money from the Bank of Cangzhou in northern Hebei province this week amid concern it could lose billions of yuan lent to the embattled Evergrande. File photo: Reuters.


Debt-laden property developer China Evergrande Group said on Tuesday its unit received a notice of enforcement for unrecoverable funds from Shengjing Bank Co Ltd.

The bank said it failed to recover funds totalling 32.595 billion yuan ($4.48 billion), which was provided to the unit from 2020 to 2021, according to Evergrande.

In early September, state-owned companies of the Chinese northestern city of Shenyang bought Evergrande‘s shareholding in Shengjing Bank in an auction for 7.3 billion yuan.

The Evergrande unit’s 30.99% stake in Xinjiang Guanghui Industry Investment Group, which it had pledged to the bank has now been enforced, the notice said.

Evergrande, which has about $300 billion in debt, said the pledged equity interest has not been auctioned or sold to a third party.


  • Reuters with additional editing by Jim Pollard





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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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