Shares in China Evergrande Group fell as much as 4.8% on Monday morning, after its chairman trimmed his stake in the cash-strapped property developer to raise about $344 million. The group's electric vehicle unit, China Evergrande New Energy Vehicle Group Ltd, also dropped more than 5% after it said the company was still exploring ways to pump capital into the unit with different investors. Evergrande has been scrambling to raise capital as it grapples with more than $300 billion in liabilities and Chinese authorities have told its chairman, Hui Ka Yan, to use some of his personal wealth to help pay bondholders, sources have said.
HONG KONG (Reuters) -After years of expansion in Hong Kong, cash-strapped Chinese developers are reducing their presence in one of the world's most expensive property markets, allowing firms in the financial hub to scoop up some of their assets at distressed prices. Developers including China Evergrande Group and Kaisa Group Holdings Ltd, struggling under billions of dollars in debt, have sold some assets in recent months to Hong Kong developers to help ease liquidity stress back home. There's more to come - Aoyuan Group, which this week extended the redemption date of onshore asset-backed securities, is trying to offload more Hong Kong properties to raise capital, two sources with knowledge of the matter said.