Home / Centerstage / 2019 / june / Week 3 /
China Evergrande Group increases its stake in Shengjing Bank, a small Chinese lender, to 36% through a capital infusion of 13.2 billion yuan ($1.9 billion). The investment appears to be a bailout by Evergrande as Shengjing Bank requires capital to meet regulatory requirements. Evergrande's stake in the bank has been puzzling given the lack of obvious synergies and poor returns. The move highlights the challenges faced by financial institutions and the need for stability in the banking sector.
Friday, 21 June, 2019