Chinese state-owned enterprises buy Evergrande’s $1.1 billion stake in Shengjing Bank

The sign of the China Evergrande Center building is seen in Hong Kong, China December 7, 2021. REUTERS/Tyrone Siu/File Photo

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HONG KONG, Sept 7 (Reuters) – State-owned enterprises in the northeast Chinese city of Shenyang bought China Evergrande Group’s (3333.HK) stake in Shengjing Bank (2066.HK) during a ‘an auction for 7.3 billion yuan ($1.05 billion). Alibaba’s auction platform showed on Wednesday.

In July, Evergrande, the world’s most indebted property developer, said its unit, Evergrande Nanchang, had been ordered to pay 7.3 billion yuan to an anonymous guarantor for failing to honor its debts.

The unit provided counter-guarantees in the form of a pledge of a total of 1.3 billion shares it held in Shenyang-based Shengjing Bank, the company said at the time. Read more

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According to the auction platform, the 1.3 billion shares of Shengjing Bank held by Evergrande Nanchang were auctioned off by the Shenyang Intermediate People’s Court at an opening price of 7.3 billion yuan. .

The winner, a group of seven companies including state-owned asset management company of Shenyang District Heping and Shenyang Hi Tech Development Investment Holding Group, was the sole bidder in the auction which ended Wednesday.

Struggling with more than $300 billion in debt, Evergrande is struggling to repay its many creditors through asset sales and debt restructuring.

The 1.3 billion shares represent a 14.6% stake in Shenjiang Bank. Evergrande, which owned 36.4% of the bank at the end of 2020, has sold its holdings in the bank since it descended into a debt crisis in the second half of last year.

($1 = 6.9726 yuan)

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Reporting by Clare Jim and the Beijing Newsroom; Editing by Simon Cameron-Moore

Our standards: The Thomson Reuters Trust Principles.

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