In recent days, speculation has been mounting that officials may ask state-owned businesses to support Evergrande. The company will be selling a nearly 20% stake in Shengjing Bank to state-owned Shenyang Shengjing Finance Investment Group. Evergrande made the announcement Wednesday, sending its shares up nearly 16% in Hong Kong.
The Chinese real estate developer has agreed to sell off part of its stake in a local bank for nearly 10 billion yuan (about $1.5 billion). But that may do little to help it meet a new bond interest payment due Wednesday. Evergrande has raised $1.5 billion in much needed cash.
