Evergrand, a popular Chinese real estate developer, has announced that it will sell a 20% stake in Xinjing Bank for $1.55 billion, to a state-owned asset management firm.
China has stepped in to buy a stake in the troubled regional bank from Evergrande Group, as China seeks to limit contagion to the financial sector from the debt-hit developer.
In this case, the deal would do little to help the Evergrande pay its huge debts to bondholders and homebuyers.
The Evergrande, which has more than $300 billion in debt, is struggling to raise funds as it faces a deadline to pay $47.5 million in bond interest on Wednesday. .
