China Evergrande plans to sell cars, property assets

Spark Global Limited reports:

On the evening of August 10, China Evergrande issued an announcement in response to abnormal stock price fluctuations. China Evergrande said it is in contact with several potential independent third-party investors regarding the sale of certain of its assets, including but not limited to the sale of a portion of its interest in Evergrande Motors and Evergrande Properties. As of the date of the announcement, no specific plans or formal agreements have been identified or entered into.

 

A day earlier, it was reported that a number of powerful state-owned and private companies are currently in in-depth discussions with Evergrande about buying stakes in Hong Kong-listed Evergrande Motors and Evergrande Real Estate, and the cooperation is expected to be finalized soon. The new energy vehicle sector is likely to introduce local state assets, which will lay a good foundation for further financing. Talks to sell stakes in Evergrande Motor and evergrande Property are “progressing well”.

China Evergrande, Evergrande Real Estate and Evergrande Motors, three of evergrande’s subsidiaries in Hong Kong, rose for two consecutive days on the news. On August 9 and 10, The share price of China Evergrande rose by 5.19% and 7.31% respectively, with the total market value of 77.77 billion Hong Kong dollars. Evergrande motor shares rose 3.56% and 8.02% respectively, with a total market value of 129 billion Hong Kong dollars. Evergrande Property increased by 9.66% and 20.50% respectively, with a total market value of HK $72.43 billion.