Chinese financial conglomerate Tomorrow Holdings Group is continuing to shed its assets with the sale of almost half of its stake in Baoshang Bank, sources told Caixin, as the secretive company begins to reveal its troubled financial situation.
Tomorrow will sell a 30% stake in Baoshang Bank to Shenzhen Investment Holdings, retaining a 40% share in the bank through various subsidiaries. Based on Baoshang’s market capitalisation, the deal will likely be valued at over RMB 18 billion ($2.8 billion).
The past few months has seen a series of frantic sell-offs from Tomorrow Holdings, whose assets include several other banks and financial institutions. In April, the group signed an urgent agreement to sell its entire stake in Guangdong’s Lianxun Securities Co., and last month it made an unsuccessful attempt to sell its shares in New China Trust Co. for RMB 22 billion.