finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

China Evergrande To Raise $5 Billion From Sale Of Property Unit

On Monday it was reported that property developer China Evergrande will sell a half-stake in its property management unit to Hopson Development for over $5 billion. Both Evergrande and Hopson have requested trading halts ahead of the sale.

Posted: 4th October 2021 by
Finance Monthly
Share this article

Evergrande is facing potentially one of China’s largest-ever restructurings as a crackdown on debt leaves the company unable to refinance $305 in liabilities. The company said it requested a trading halt as it waits for an announcement about a major transaction. The Evergrande Property Services Group said the announcement will constitute "a possible general offer for shares of the company."

According to China’s Global Times, Hopson Development is the buyer of the 51% stake in the property unit. Hopson had also said it was suspending trading in its shares, awaiting an announcement related to a major acquisition of a Hong Kong-listed company. Although it is yet to be confirmed whether Hopson’s statement was related to the Evergrande Group, the company has a larger potential to assist Evergrande than other property developer, owning more assets than liabilities. 

The potential deal between Evergrande and Hopson has appeared to respark wider concerns regarding the risk of contagion or a hit to China’s property sector and the broader economy if Evergrande does collapse or is liquidated at very low prices. According to Reuters, Government-owned companies have been encouraged to purchase some of Evergrande’s assets.  

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram