Government-backed entities have acquired China Evergrande Group’s stake in Shengjing Bank in an auction, Reuters has reported.

The deal was valued at around $1.05bn (CNY7.3bn), according to the data published on the Alibaba auction platform. 

In July this year, Evergrande disclosed that one of its subsidiaries Evergrande Nanchang had been ordered to pay CNY7.3bn to a guarantor for not meeting its debt obligations. 

Subsequently, Nanchang provided counter-guarantees pledging its 1.3 billion shares that it controlled in Shengjing Bank.

Shenyang Intermediate People’s Court auctioned Evergrande’s 1.3 billion shares in the lender at an opening bid price of CNY7.3bn. 

The 1.3 billion shares, which amount to a 14.6% stake in Shengjing Bank, were acquired by a consortium of seven entities including Shenyang Heping District State-owned Assets Management Company and Shenyang Hi Tech Development Investment Holding Group.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Evergrande is believed to have amassed more than $300bn in liabilities and it struggling to pay its creditors via asset sales and debt restructuring. 

At the end of 2020, the property developer had 36.4% in the bank and it has been selling its stake since its liquidity crisis began in the second half of 2021. 

In September 2021, Evergrande announced plans to divest a $1.5bn stake in Shengjing Bank, which is one of the lenders to the developer. 

Last month, the China Banking and Insurance Regulatory Commission (CBIRC) launched a probe to review the property loan portfolios of some local and foreign banks.