China Railway Construction Investment Group said that it plans to sell the entire 49% equity stake it holds in Evergrande Real Estate (Shenzhen), for at least RMB 2.66bn ($398.8mn), according to a notice. Evergrande Real Estate (Shenzhen) is currently 51% owned by Evergrande Group and 49% by China Railway. SCMP notes that if the transaction goes through, Evergrande would be losing a state-controlled ally. The Evergrande Shenzhen unit reported a loss of RMB 247mn ($37mn) in 2021. Talks are currently focused on Evergrande’s restructuring with the latest update being that the developer was looking to repay offshore bondholders’ principal and interest with cash instalments and equity in two of its Hong Kong-listed units.
Evergrande’s dollar bonds were flat trading at ~10 cents on the dollar.