Hui Ka Yan, Founder and Chairman of China Evergrande has stepped down as the chairman of its unit Hengda Real Estate. Zhao Changlong, who was previously the chairman of Evergrande’s property services was named as the new chairman of Hengda. Bloomberg reports that the change in management was released on the ‘National Enterprise Credit Information Publicity System’, a corporate information platform which is not typically used for major company announcements. Evergrande’s bonds fell with Bloomberg adding that the market reaction underscored how sensitive investors have become to any signs of upheaval at Evergrande as it attempts ‘to stave off a cash crunch’.
Separately, Evergrande Nan Chang, an indirect wholly-owned subsidiary of China Evergrande sold about 167mn shares of Shengjing Bank at CNY 6/share to Northeast Pharmaceutical Group and Shenyang Shengjing Financial Holdings Investment, two units of State-Owned Assets Supervision and Administration Commission of Shenyang. In total, a 1.9% stake amounting to CNY 1bn ($154mn) was sold by Evergrande, as the property developer seeks to raise funds via asset sales.
Also, Evergrande’s President Xia Haijun sold 10mn shares in Evergrande Property Services Group and 3mn shares in China Evergrande New Energy Vehicle Group, according to filings. His stake in the property services arm is now down from 0.61% to 0.51% and in the new energy vehicle arm is down from 0.15% to 0.12%
Evergrande’s 9.5% 2022s are down 3.7 points to 50.7 and its 11.5% 2022s issued by Hengda are down 3.5 since yesterday to 37.5 cents on the dollar.
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