(Bloomberg) — China Evergrande Group Chairman Hui Ka Yan was forced to sell pledged shares in the company, according to disclosures that came a day after the developer was officially labeled a defaulter for the first time.
The sale of 277.8 million shares brings Hui’s stake to 59.78% from 61.88%, filings to the Hong Kong stock exchange showed Friday. No transaction value was given.
“Steps have been taken to enforce a security interest in the shares, or rights to such shares held as security against” Hui, the filing said.
The transaction comes after Hui sold 1.2 billion shares in late November, his first divestment since Evergrande went public in 2009.
Evergrande was downgraded to restricted default by Fitch Ratings on Thursday.
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