China's Shimao Group to sell its $12 bn in assets: Caixin Report

According to a Caixin report, Shimao Group, a Chinese real estate firm, plans to sell nearly $12 billion in assets since the developers seek to raise funds to combat its liquidity. Chinese real estate firms struggled during the Beijing drive to curb excessive debt in the real estate sector and rampant consumer speculation, exerting pressure on its economy. Evergrander is facing the most prominent issue of liquidity, which has been teetering on the brink for months because of servicing problems and a debt pile of $300 billion. As per the report, Shimao Group plans to offload 34 projects in 17 cities like Beijing, Shanghai and Hangzhou. Its assets lie across the residential sector, commercial, office space and hotel projects. Its 15 projects were valued at $6.65 billion or 42.2 billion yuan, while 19 others were either partly-owned or in the early stage, with an investment of 32.5 billion yuan. The company's shares increased by 7% in Hong Kong after Evergrande's shares rallied in reaction to the appointment of an official state firm. Shimao Group and Agile Group announced the sale of stakes in companies to state-owned enterprises. Image Source Also read: China to rollout infra projects to combat economic slowdown