China Lending Corp. plans to sell at least a controlling stake in its unit Urumqi Fenghui Direct Lending Co. Ltd. for no less than 15 million yuan.
China Lending said its unit, China Industrial Financial Holding Group Co. Ltd., agreed to sell either a 100% stake or a controlling interest in Urumqi Fenghui to Zhejiang Zhongfeng Investment Management Co. Ltd. in an Aug. 12 filing.
Urumqi Fenghui primarily provides loan facilitation services to micro, small and medium-sized enterprises in the Xinjiang Uygur Autonomous Region in China.
The sale will allow China Lending to reduce its debt and improve its liquidity.
As of Aug. 12, US$1 was equivalent to 7.06 Chinese yuan.