China’s Country Garden looks to sell stake in chip maker CXMT as winding-up adjourned
- Investment arm plans to dispose of undisclosed stake amid debt struggles, as the developer gets a seven-week reprieve on a winding-up petition
Defaulted Chinese developer Country Garden Holdings is looking to dispose of a stake in chip company ChangXin Memory Technologies (CXMT) via its venture capital arm, as it struggles to pare assets and work out its debts amid slumping home sales. The company also received seven weeks of breathing room on a liquidation hearing in a Hong Kong court.
Country Garden Venture Capital, an investment unit of Country Garden that was founded in 2019, is planning to dispose of its undisclosed stake in CXMT, according to people familiar with this matter, who did not disclose further details.
Country Garden Venture Capital holds a 1.68 per cent stake in CXMT, according to Chinese corporate data service Qichacha. In late March, CXMT raised 10.8 billion yuan (US$1.5 billion) in a round of fundraising, pushing its valuation close to 140 billion yuan.
The cash-strapped developer reported on Tuesday that its contracted sales for May slumped 76 per cent year on year to 4.3 billion yuan, adding to a year-on-year decline of 83 per cent in April.