HONG KONG (Reuters – China Evergrande Group shares fell by 4.8% on Monday after its chairman reduced his stake in the cash strapped property developer in order to raise around $344 Million.

China Evergrande New Energy Vehicle Group Ltd Ltd, the group’s electric vehicle division, saw its stock drop more than 5%, after the company said it was still looking for ways to raise capital with other investors.

Evergrande is trying to raise capital, as it has more than $300B in debts. Chinese authorities told Evergrande’s chairman Hui Ka Yan to borrow some of his wealth from China to pay its bondholders. Sources say Evergrande was already struggling to find funds.

Evergrande has failed to make $82.5 million in coupon payments due Nov. 6. Investors are nervous to see how it will pay its obligations. A 30-day grace period expires Dec 6.

On Friday night, Hui revealed that 1.2 billion shares had been sold at an average of HK$2.23 per share. The sale reduced Hui’s stake to 67.9% from 77%.

Evergrand, once China’s most-sold developer, has been hit hard by credit ratings downgrades and defaults.

Fantasia Holdings has suspended trading of company shares since Monday, pending the release of more information. A winding-up petition against the unit was filed by Fantasia Holdings on Thursday. It is related to an outstanding mortgage.