China Evergrande’s stake in property service unit dropped to 51.71% after forced selling

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Embattled property developer China Evergrande Group’s stake in its property services unit has dropped to 51.71% from 58.18% after forced selling of pledged shares by a third party, according to a filing to the Hong Kong Stock Exchange. 

The number of Evergrande Property Services Group shares involved was 700 million, and the drop was the result of steps taken on Dec. 14 to enforce rights to the shares held as security against the embattled property developer, the filing said. it’s not clear who sold the pledged shares.

Trading in shares of both Evergrande Group and Evergrande Property Services has been suspended since March, pending the release of their 2021 financial results and an investigation of a bank enforcement of a pledge guarantee of the services unit.