Evergrande offloads US$1 billion Shengjing Bank stake

The shares Evergrande sold accounted for about 14.6 percent of the bank and were the company's entire holding.

Photo from CFP

Photo from CFP



A total of 1.3 billion shares in Shengjing Bank owned by Evergrande were sold for 7.3 billion yuan (US$1 billion), below the 7.6-billion-yuan valuation. The shares accounted for about 14.6 percent of the bank and were Evergrande’s entire holding.

The consortium was formed by seven companies, three of which were SOEs from Shenyang, the capital of Liaoning Province where Shengjing Bank is based.

The foundering property developer became the largest shareholder of the bank in 2016. By 2020, it held 36.4 percent of Shengjing Bank shares but has since staged two previous fire sales to pay debts. 

Evergrande has been making vigorous efforts to turn its situation around. More than 90 percent of its residential construction projects have resumed work. Sales are also recovering.  The company sold 40,255 units in the first eight months, making 18.2 billion yuan.