Chinese Estates Holdings, the second largest shareholder in China, wants to sell all of its stake in the Chinese real estate company. The company said it has already sold $ 32 million worth of shares in Evergrande and plans to completely divest from the holding company.
The sales mandate is valid for 12 months from the date of a shareholders’ meeting on September 23 to approve the sale, the company announced on the Hong Kong Stock Exchange. Chinese Estates also said they had sold 108.91 million shares, or 0.82 percent of the issued share capital of Evergrande, for Hong Kong dollars 246.5 million ($ 32 million) between August 30 and September 21.
The company estimates that on the sale of its entire stake, it will incur a loss of approximately Hong Kong dollars 9,486.3 million ($ 1.22 billion) in 2021. On Thursday, the company’s shares rose 23 percent after the coupon payment for its onshore bond traded in Shenzhen was “resolved” on Wednesday.
: The real estate company Evergrande is on the brink. This is still primarily an internal Chinese problem.