China Evergrande to sell $1.5 bn stake in Shengjing Bank to state firm

Shengjing Bank had demanded that all net proceeds from the disposal be applied to settle the relevant financial liabilities of the group due to Shengjing Bank, Evergrande said.

Cash-strapped China Evergrande Group left its offshore bondholders guessing whether it would pay interest on a bond coupon due Wednesday despite agreeing to settle debt with a Chinese bank in a $1.5 billion stake divestment deal.

With liabilities of $305 billion, Evergrande has sparked concerns its woes could spread through China's financial system and reverberate around the world - a worry that has eased with the Chinese central bank vowing to protect homebuyer interest.

Evergrande said in an exchange filing that it would sell a 9.99 billion yuan ($1.5 billion) stake it owns in Shengjing Bank Co Ltd to a state-owned asset