A major shareholder in China Evergrande Group plans to sell all of its stock in the conglomerate, potentially losing $1 billion or more, The Wall Street Journal reports.
Chinese Estates Holdings Ltd., which is owned by Hong Kong billionaire Joseph Lau and his wife, Chan Hoi-wan, announced Thursday that it recently reduced its stake in Evergrande from just under 6.5% to 5.7%. China Estates is now asking its shareholders for permission to sell more shares.
In 2017 and 2018, Chinese Estates spent $1.75 billion in 2017 to buy Evergrande shares and $86 million to buy Evergrande bonds, filings show.
China Estates' board is now expressing concerns over Evergrande's liquidity issues and operational risks, and the market and economic conditions surrounding China's real estate, stock and bond markets.