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Major Evergrande Backer Chinese Estates May Sell Its Shares

Hong Kong developer sells $32 million in Evergrande stock
Chinese Estates may book loss if it sells all holdings

WATCH: Evergrande is sitting on more than $300 billion in liabilities and it’s not just Chinese markets that are unsettled. Sofia Horta e Costa explains why people are calling it a “Lehman moment.”(Source: Quicktake)

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By Venus Feng

September 22, 2021 at 8:32 PM EDT

Updated on

September 23, 2021 at 12:25 AM EDT

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Chinese Estates Holdings Ltd. sold shares in China Evergrande Group and said it may exit all its holdings, a major withdrawal of support from one of the embattled developer’s long-time backers.

Chinese Estates sold 108.9 million Evergrande shares for HK$246.5 million ($31.7 million) from Aug. 30 to Sept. 21, according to a statement to the Hong Kong exchange Thursday. The Hong Kong real estate firm may sell its remaining 751.1 million Evergrande shares, adding it could take a loss of about HK$9.5 billion if it sold all the stock.