Tomorrow Holdings Group has become the latest Chinese conglomerate to initiate a frantic sell-off of recently acquired assets, signing over its 95% stake in New China Trust Co. in efforts to ease liquidity concerns.
The sale valued New China Trust at RMB 22 billion ($3.44 billion), according to Caixin.
Tomorrow has been shedding assets under governmental pressure which it had recently acquired through a series of debt-driven spending sprees. Last month, the company signed an urgent agreement to sell all of its shares in Guangdong-based Lianxun Securities Co., and three months previously offloaded its RMB 9 billion stake in Hong-Kong listed Hengtou Securities Co.
The viability of the deal has been put into question, however, after it was revealed that potential buyer, state-run travel company CYTS Group, recently missed some of its loan repayments.