SHANGHAI (Reuters – China-listed businesses are divesting more real estate companies amid tighter regulatory scrutiny. These filings were made in a year dominated with headlines about China Evergrande Group’s financial woes.
Some property developers have been facing financial difficulties due to tightened lending restrictions in this sector. This has led to liquidity problems across the entire sector.
China Evergrande has been one of the biggest country developers. It’s had trouble making payments for billions worth of bonds. Meanwhile, smaller counterparts have also missed payments or had credit ratings downgraded.
Beijing Shunxin Agriculture Co Ltd, a liquor- and meat producer, announced Thursday that it would sell all of its stakes in an asset unit with a negative net worth.
Two weeks ago, Hainan Yedao Group Co Ltd had announced that it was selling its 40% share in a property firm to improve liquidity and focus on its core business.
According to the State-run Securities Times, Xiamen ITG Group Corp Ltd., Aoyuan Beauty Valley Technology Co., and Zhangtian Financial Group Co Ltd. have all announced plans for disposing of property businesses.
Data from China Trust Association shows outstanding investments from trust companies fell to below 2 trillion Yuan (313.66 Billion) in the third quarter. This is 26% lower than a year ago.
($1 = 6.3763 renminbi)
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