Evergrande loses ally after state-owned China Railway puts its stake in real estate unit up for sale

News Snapshot:

China Evergrande Group, the world’s most indebted developer, lost an important ally after a state-owned enterprise put shares of the real estate company’s unit onto the market. China Railway Construction Investment Group said that it plans to sell 49 per cent of its equity in an Evergrande-controlled enterprise, Evergrande Real Estate (Shenzhen), for a minimum of 2.66 billion yuan (US$398.8 million), according to a notice posted Tuesday on the official China Beijing Equity Exchange, an equity transaction bourse and platform for mergers, acquisitions and restructuring. The Shenzhen-based enterprise, which focuses on real estate development, housing rentals as well as interior...