As China Evergrande shores up finances, key insider cuts stakes in units
- Xia Haijun trimmed his stakes in Hong Kong-listed NEV and property management units amid asset-sale plans
- Billionaire founder Hui Ka-yan is seeking to steady the ship after a 65 per cent plunge in his flagship company this year
Billionaire Hui Ka-yan needs all the help he can get to shore up confidence in his beleaguered China Evergrande Group. Instead, insider selling by one of his lieutenants is causing its stock to wobble anew.
Xia Haijun, vice-chairman and chief executive of the Shenzhen-based developer, sold about HK$115.6 million (US$14.8 million) worth of stakes in the group’s electric-car making unit and property management arm on August 11, according to stock exchange shareholding data.
He sold 3 million shares in China Evergrande New Energy Vehicle Group at an average price of HK$14.18 each, trimming his stake to 11.65 million shares. He had acquired this block of shares on June 21 at an average price of HK$27.30, according to the data.
Xia also sold 10 million shares in Evergrande Property Services Group on August 11 at an average price of HK$7.30 each, paring his ownership to 55.68 million shares. The cost of his stake, held since December last year, was not disclosed.
Both stocks have since slumped. Shares of the EV maker tumbled 7.3 per cent to HK$11.70 in Hong Kong, while the property services unit climbed 1.1 per cent to HK$6.49 after earlier losing as much as 7.1 per cent. China Evergrande fell 0.8 per cent to HK$5.25, bringing the slump this year to about 65 per cent.