Shares in China Evergrande jumped on the back of an asset sale that generated $2.2 billion in cash and helped to ease investor concerns over the financial health of the world’s most indebted property developer, reported the Financial Times.
The Hong Kong-traded shares of China’s largest property group rose as much as 5.2% on Monday, a day after Evergrande said it had sold a 41% stake in Guanghui Industrial, which focuses on energy development, auto services and logistics, to Shenergy Group.
The shares later pared some of those gains to trade 1.6% higher.
The asset sale, which Evergrande said would enable it to “focus more on its core business”, highlights the company’s push to raise cash at a time when market scrutiny of its more than $120 billion debt load has intensified.