China Evergrande to transfer $1.5 billion stake in Shengjing Bank to state firm

Founded in 1996 by Chairman Hui Ka Yan in Guangzhou, Evergrande is China's second-largest property developer with $110 billion in sales last year. Credit: Reuters Photo

Debt-laden China Evergrande Group said on Wednesday it planned to transfer 1.75 billion shares of Shengjing Bank Co Ltd for 9.99 billion yuan ($1.5 billion).

The shares, representing 19.93% of the issued share capital of the bank, will be transferred for 5.70 yuan apiece to Shenyang Shengjing Finance Investment Group Co Ltd, a state-owned enterprise involving in capital and asset management, China Evergrande said in a filing to the Hong Kong bourse.

Also read: China threatening to take Evergrande's success away

Beijing is prodding government-owned firms and state-backed property developers to purchase some of embattled China Evergrande Group's assets as the company teeters on the brink of collapse, people with knowledge of the matter told Reuters this week.