China Evergrande Group, the world’s most indebted real estate developer, has completely withdrawn from Shengjing Bank after divesting all its stake in the Hong Kong-listed lender.

The Paper reported on September 7th that Evergrande Nanchang, a unit of the developer giant, sold all 1.3 billion shares held at Shengjing Bank.

The shares were sold via an Alibaba auction platform on September 7th.

Reuters citing the platform, said that the 1.3 billion shares were auctioned by Shenyang Intermediate People’s Court in Liaoning Province. They were finally sold at an opening bidding price of $1.1 billion (7.3 billion yuan).

China’s state-owned companies took over Evergrande’s holding in Shengjing Bank.

The successful bidders include Shenyang Heping District State-owned Assets Management Company, Shenyang Hi-Tech Development Investment Holding Group, and the controlling shareholder—Shenyang Ruijin Asset Management Company. They were the only bidders at the auction.

Evergrande divested from Liaoning Province-based Shengjing Bank as it sought to repay its creditors through asset sales and debt restructuring.

Evergrande has more than $300 billion in debt and other liabilities.

Before the auction, Evergrande was the second-largest shareholder in Shengjing Bank. Evergrande Nanchang’s unit held a 14.57% stake in the bank by June 2022. Shenyang Shengjing Financial Holding Investment Group held a 20.79% stake.

At the end of 2020, Evergrande held 36.4% of Shengjing Bank. But it had been selling down its holdings in the bank since it slid into a debt crisis in the second half of last year.

The success of this equity auction means Evergrande completely withdrew from Shengjing Bank.

Shengjing Bank was formerly known as Shenyang Commercial Bank. It was renamed in February 2007. In December 2014, Shengjing Bank listed on the Hong Kong Stock Exchange.

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