HONG KONG (Reuters) – Chinese property developer Shimao Group joined smaller peer Agile Group to sell its stake in a Guangzhou complex to state-owned partner China Overseas Land & Investment (COLI) in a push to reduce its debt.

Shimao owned a 26.7% share in Guangzhou Asian Games City. It sold the holdings to COLI late Monday for 1.84 Billion Yuan ($290.65 millions). Agile also made similar announcements earlier in the day.

Shanghai-based Shimao (which has fallen behind on its trust loan payments and has extended asset-backed security payments) has indicated that it may sell some of its assets to help lower its debt.

COLI will now own a greater stake in Guangzhou Asian Games City than it did 20%, according to an additional filing. It also stated that the acquisitions were great opportunities to help it “further enhance its property development business.”

Guangzhou Asian Games City has a 5.9 Million square metre construction area.

China Evergrande Group, once China’s best-selling developer and now the most indebted real estate company, has pointed out that borrowing restrictions have pushed China’s property market into financial crisis.

According to a source, Beijing is taking steps to restore stability. It has made it simpler for state-backed development firms to acquire distressed assets owned by private firms that are indebted, the source said.

Shimao reported last week it had sold Shanghai’s commercial property for 1.06 Billion Yuan to an entity owned by Shanghai Municipal Government.

Shimao’s shares rose 3.3%, and COLI decreased 1.1% on Tuesday. Guangzhou-based Agile shares fell 2.2%.

($1 = 6.3306 )