Forced sale reduces China Evergrande chief’s stake in its services unit

December 24, 2021

The sign for the China Evergrande Center building in Hong Kong, China, December 7, 2021. REUTERS / Tyrone Siu

HONG KONG, Dec 24 (Reuters) – The stake of the chairman of China Evergrande Group in its real estate services unit has fallen from 60.96% to 58.18% after the forced sale of shares that were deposited as collateral before a third, according to a presentation on the Hong Kong stock exchange.

The number of Evergrande Property Services Group shares involved was 300 million, and the drop was the result of measures taken on December 20 to enforce the rights of the shares held as collateral against President Hui Ka Yan, it said. the presentation.

Reuters could not immediately determine who sold the pledged shares.

These shares were worth roughly 798 million Hong Kong dollars ($ 102.32 million), based on the share’s closing price of 2.66 Hong Kong dollars that day.

Shares of Evergrande Property Services Group closed down 1.5% on Friday at 2.63 Hong Kong dollars.

Evergrande Group, with more than $ 300 billion in liabilities and in danger of the largest default in Chinese history, has tried to make money by selling assets and shares.

Hui’s stake in Evergrande Group fell to 59.78% earlier this month, also due to forced sales.

($ 1 = HK $ 7.7989)

(Reporting by Clare Jim; editing by Muralikumar Anantharaman; translation by Flora Gómez)