China Railway to sell Evergrande stake
June 8, 2022
China Evergrande Group, the world’s most indebted developer, lost an important ally after a state-owned enterprise put shares of the real estate company’s unit onto the market, reports the South China Morning Post. China Railway Construction Investment Group said that it plans to sell 49% of its equity in an Evergrande-controlled enterprise, Evergrande Real Estate (Shenzhen), for a minimum of RMB 2.66 billion ($398.8 million).
The Shenzhen-based enterprise, which focuses on real estate development, housing rentals as well as interior home decoration, is currently 51% owned by Evergrande Group and 49% by China Railway.
China Railway, which is under the State-owned Assets Supervision and Administration Commission of the State Council, bought the holdings in Evergrande Real Estate (Shenzhen) in December 2019 for RMB 2.3 billion.