China's Shimao says it has no deal to sell Shanghai plaza, shares slump

China's Shimao says it has no deal to sell Shanghai plaza, shares slump

HONG KONG :Shares of Chinese property developer Shimao Group Holdings fell 5per cent in early Asian trading on Tuesday after it denied a media report that it has entered into a preliminary agreement to sell a Shanghai plaza.Shimao said in a filing, however, it is in talks with some potential buyers and may co

HONG KONG :Shares of Chinese property developer Shimao Group Holdings fell 5per cent in early Asian trading on Tuesday after it denied a media report that it has entered into a preliminary agreement to sell a Shanghai plaza.Shimao said in a filing, however, it is in talks with some potential buyers and may consider disposing off some properties in order to reduce its indebtedness.

The Shanghai-based developer said it defaulted a trust loan last week after missing a 645 million yuan (US$101.10 million) payment that it guaranteed.Caixin reported over the weekend that Shimao had struck a preliminary deal with a state-owned company to sell its Shimao International Plaza Shanghai, for more than 10 billion yuan.