Evergrande Slides After Caixin Reports Talks on Lender Stake
- Government talks with Evergrande on diluting stake in bank
- Stocks and bonds continue to decline despite share buybacks
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China Evergrande Group fell after Caixin’s WeNews reported that a local government discussed paring the property giant’s stake in a regional lender and a new policy could curb a key source of financing for developers.
Authorities in the northeastern Liaoning province held discussions with Evergrande to inject state capital into Shengjing Bank Co. to dilute Evergrande’s stake, according to a report by WeNews on Sunday, citing unidentified people. Evergrande is the biggest shareholder of the bank headquartered in Liaoning.