China Evergrande plans to sell entire stake in HengTen to meet mounting liabilities

China’s indebted real-estate giant, Evergrande Group, plans to sell the rest of its stake in HengTen Networks Group Ltd. for HK$2.13 billion ($273 million), in order to raise cash to meet its mounting liabilities, per Bloomberg.

Key takeaways

“The developer agreed to sell its 18% holding in the internet services firm to Hong Kong-based Allied Resources Investment Holdings Ltd. at HK$1.28 apiece.”

“Evergrande said it expects to incur a loss of HK$8.5 billion from the sale, which comes as it tries to raise cash and make good on more than $300 billion in liabilities.”

Market reaction

The above piece of news offers little respite to the markets, as the mood remains damp amid persistent inflation concerns.

The Asian markets are trading lower, led by the 1% drop in the Japanese Nikkei 225 index. Meanwhile, the S&P 500 futures are almost unchanged on the day.

AUD/USD is at multi-week lows just above 0.7250, losing 0.08% so far.