China Evergrande shelves plan to sell stake in property services unit

FILE PHOTO: An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo/File Photo

China‘s property sector saw more drama on Tuesday as Evergrande shelved plans to sell a majority stake in its property services unit, Sinic formally declared default and Kaisa was crunched by another credit rating cut.

Sources told Reuters that Evergrande, teetering on the brink of collapse with more than $300 billion in debt, had been forced to stall its proposed $2.6 billion, 51% stake sale to smaller rival Hopson Development after failing to win the blessing of the Guangdong provincial government which is overseeing Evergrande‘s restructuring.

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