Chinese Estates Holdings Ltd. Sold shares in China Evergrande Group and said it may exit all its holdings, a major withdrawal of support from one of the embattled developer’s long-time backers.
Chinese Estates sold 108.9 million Evergrande shares for HK$246.5 million ($31.7 million) from Aug. 30 to Sept. 21, according to a statement made to the Hong Kong exchange. The company may sell its remaining 751.1 million Evergrande shares, it said. The firm could take on a loss of about HK$9.5 billion if it exited all its holdings.
Chinese Estates Chief Executive Officer Chan Hoi Wan, the wife of billionaire Joseph Lau, has been offloading stake in the world’s most-indebted developer as it edges closer to a restructuring. The exit by long-time supporters of Evergrande founder Hui Ka Yan is another sign that the company has lost the confidence of investors as it struggles to make good on its $300 billion in liabilities.
The outlook for Evergrande is deteriorating by the day, with the company and local government hiring advisers for what could be one of the country’s largest-ever debt restructuring. Protests against the company broke out out across China after Evergrande failed to pay retail investors of its high-yield products on time.
Evergrande shares have plummeted this year, sliding 85% in Hong Kong.
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