Clare Jim and Indranil Sakar

HONG KONG, (Reuters) – China Evergrande Group has sold its whole stake in streaming service firm HengTen Network Group for HK$2.13 Billion ($273.5 Million). This cash-strapped company is increasing efforts to prevent a crippling default on its debts.

Evergrande (the world’s largest developer) said that it will lose HK$8.5billion from the sale of its 18% share in HengTen. Tencent Holdings, a Chinese social media and gaming giant, holds around a 20 percent stake.

As it struggles with over $300 billion in debts, including $19 billion international market bonds, Shenzhen’s real estate firm has been struggling to keep up in the last few weeks.

Evergrande, a wholly-owned unit, entered into an agreement to sell 1.66 Billion HengTen shares to Allied Resources Investment Holdings Ltd (owned by Li Shao Yu), at HK$1.28/share, a discount of 24 percent from its Wednesday closing price.

Evergrande continues to sell its HangTen stake at 26.55% on the secondary markets since January.

Evergrande’s shares fell 2.5% late in the morning, while HengTen, an online streaming and production company that produces TV programmes, was up 22.5%.

Evergrande stated that 20% of the consideration for the deal will be paid within five days of signing the agreement. The remaining balance will be due within two months according to a filing with the Hong Kong stock exchange.

As investors wait for Evergrande to meet its obligations, they are anxious. Evergrande failed to make $82.5m in coupons due Nov. 6.

Another Chinese property developer is also increasing their financing efforts through share sales, as the liquidity in offshore bonds market dried up because of fears about Evergrande’s trouble.

Country Garden Services Holdings is the property services division of Country Gardens. According to a term sheet Reuters saw on Thursday, Country Garden Services Holdings has sold 150 million shares. This represents 4.5% of the enlarged capital to raise $1.03Billion.

This price represents a 9.5% discount on the Wednesday’s last traded price, HK$58.95. Country Garden Services indicated that the proceeds will be used for future acquisitions opportunities as well as new business development.

While shares in the company were not allowed to trade on Thursday, those of parent Country Garden fell 3.2%.

A smaller competitor, Agile Group, also announced Thursday that it has sold convertible bonds valued at HK$2.4 trillion based on an initial exchange rate of HK$27.48/share of A-Living Smart City Services.

The bonds, when fully converted will amount to 6.2% of A-Living’s issued share capital. A-Living shares plunged 8.3% on Thursday to HK$21

Agile believes that Agile’s fund-raising is a good investment, given current market conditions. According to the company, it had remitted the funds necessary for repayment of its senior notes worth $190 million due on Thursday.

Sunac China was one of the four top developers in China. It reported that it had raised $949.70million by selling shares in Sunac Services and issuing new stock.

Chinese property developers face stiff competition from unprecedented Beijing policy tightening measures to reduce speculative purchasing.

China Vanke stated Tuesday that its staff needed to be more aware of crisis and to cut spending. This was according to an individual with direct knowledge.

Evergrande saved a potentially destabilizing default last week with a late bond payment, but it did not alleviate the liquidity crunch-related strains that the wider country’s property sector was facing.

Evergrande is due to receive coupon payments in excess of $255 Million on Dec. 28. The company has faced pressure from other creditors and has had to make difficult funding decisions.

Two people familiar with the situation told Reuters that Evergrande chairman Hui Ka Yan (63), has been urged by Chinese authorities to pay bondsholders using some of his personal assets.

According to reports and someone with information, its founder has begun to free up luxury assets, including calligraphy and art, as well as three homes.

Shanghai Trendzone Holdings, a construction company, said Wednesday that it will sue Evergrande for the $38.3 Million in unpaid payments.

($1 = 7.7889 Hong Kong dollars)