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China Evergrande amends 3.50B yuan stake sale agreement

China Evergrande Group agreed to amend a deal to sell interest in Hengda Real Estate Group Co. Ltd. to Shenzhen Meitou Hi-tech Venture Capital Investment Co. Ltd.

Aside from naming Shenzhen Meitou Buyang Investment LLP as the new investor, the stake allocation was also increased to 1.53% from 1.32%. Consequently, Shenzhen Meitou will pay 3.50 billion Chinese yuan for the interest, instead of the 3.00 billion yuan agreed on in December 2016.

Shenzhen Meitou is one of the eight parties that have agreed to invest 30 billion yuan in Hengda Real Estate. Hong Kong-listed China Evergrande's agreement to inject Hengda Real Estate into Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd., which is seen as its way of a backdoor listing in the mainland, was approved by the Hong Kong bourse in January.

In March, China Evergrande was said to have traded its interest in China Vanke Co. Ltd. so that the Shenzhen government will approve the backdoor listing.

As of March 31, US$1 was equivalent to 6.89 Chinese yuan.