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Evergrande’s Services Unit Stake Falls After Forced Selling

The services unit’s pledged shares were last enforced a year ago, when the group’s ownership was reduced from 60.96%


China Evergrande shares dropped on Monday after several of employees of its wealth management unit were arrested on Saturday.
Saddled with more than $300 billion in liabilities, the Evergrande Group is undergoing a debt restructuring after it defaulted in late 2021. Photo: Reuters.

 

China Evergrande Group’s shareholding in its property services unit dropped to 51.7% from 58.2%, following the forced sale of its pledged shares by a third party.

The forced sale involved 700 million shares of the Evergrande Property Services Group, a Hong Kong stock exchange filing showed.

It followed actions taken on December 14 to enforce rights to the shares held as security against the debt-ridden property developer.

 

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Reuters said it could not immediately determine who sold the pledged shares.

The services unit’s pledged shares were last enforced a year ago, when the group’s ownership reduced from 60.96%.

Trading in shares of both Evergrande Group and Evergrande Property Services has been suspended since March, pending the release of their 2021 financial results and an investigation of a bank enforcement of a pledge guarantee of the services unit.

Saddled with more than $300 billion in liabilities, the Evergrande Group is undergoing a debt restructuring after it defaulted late last year.

 

  • Reuters, with additional editing by Vishakha Saxena

 

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Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has been working as a digital journalist since 2013, and is an experienced writer and multimedia producer. As an eager stock market trader and investor, she is keenly interested in economy, emerging markets and the intersections of finance and society. You can tweet to her @saxenavishakha

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