A major Chinese investor just cut its Deutsche Bank stake

A heavily indebted Chinese conglomerate is ditching more of its shares in Deutsche Bank.HNA Group, which has b...

Posted: Apr 23, 2018 12:36 PM
Updated: Apr 23, 2018 12:36 PM

A heavily indebted Chinese conglomerate is ditching more of its shares in Deutsche Bank.

HNA Group, which has been selling billions of dollars of foreign assets recently, revealed over the weekend that it cut its stake in Germany's biggest lender from 8.8% to 7.9%.

The move was unexpected, as HNA had said in February after a previous sale that it wasn't planning to reduce its stake further.

Related: A massive Chinese company is reversing its spending spree

HNA surprised investors just under a year ago when it became Deutsche Bank's biggest shareholder by snapping up a 10% stake. But the company began trimming its holding earlier this year as it seeks to deal with the mountain of debt it built up during an epic overseas shopping binge.

Warut Promboon, managing partner at Hong Kong research firm Bondcritic, said it "makes sense" for HNA to sell down its Deutsche Bank stake, considering how badly the company needs cash.

HNA will also be seeking to limit its losses on the investment, Promboon added, given that Deutsche Bank's stock has shed about a quarter of its value in the past year.

"I would expect more Deutsche Bank stake sales in the future," he said.

A spokesman for HNA said that the company is committed to remaining a "major investor" in Deutsche Bank and that the latest share sale was made "due to the current market environment."

The Chinese conglomerate started out as a regional airline more than 20 years ago. It went on a buying spree in recent years, buying big chunks of major US and European companies and racking up an estimated $100 billion in debt in the process.

The company has since reversed course, selling assets to ease financial pressures as authorities in China crack down on aggressive overseas deal-making by Chinese companies.

Related: China's big conglomerates are no longer buying up the world

HNA said earlier this month that it would offload its roughly $6.5 billion stake in hotel operator Hilton Worldwide. HNA has already sold its stake in Hilton Grand Vacations for $1.1 billion and its stake in Hilton Park Hotels & Resort for just under $1.4 billion.

Other Chinese companies are also scaling back global ambitions under pressure from the country's government.

Deutsche Bank has been dealing with its own problems. John Cryan, who became CEO of the bank less than three years ago, will leave at the end of this month following years of heavy losses. He will be replaced by Christian Sewing, an executive who has worked for Deutsche Bank for nearly three decades.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 161516

Reported Deaths: 3916
CountyCasesDeaths
DeSoto10863104
Hinds10705207
Harrison7624114
Jackson6774131
Rankin6303114
Lee557798
Madison5311112
Forrest405587
Jones388589
Lauderdale3754149
Lafayette347358
Washington3421108
Lamar310350
Lowndes265168
Oktibbeha262763
Bolivar254686
Panola243754
Neshoba2333124
Marshall229451
Leflore216492
Monroe216278
Pontotoc213631
Lincoln203267
Sunflower198156
Warren189559
Tate187251
Union179626
Copiah176141
Pike170860
Pearl River168170
Itawamba166637
Scott166030
Yazoo164441
Alcorn161529
Coahoma160044
Prentiss159034
Simpson156954
Grenada149545
Adams148852
Leake146244
George138326
Covington137642
Holmes136861
Tippah135230
Winston134326
Hancock132842
Wayne127424
Attala126836
Marion126548
Tishomingo116444
Newton114929
Chickasaw112632
Tallahatchie101227
Clay98527
Clarke96954
Jasper90023
Stone85115
Calhoun82413
Montgomery80726
Walthall80430
Carroll78115
Lawrence76814
Smith76516
Yalobusha75728
Noxubee74817
Perry70127
Greene66023
Tunica64019
Amite61815
Jefferson Davis60818
Claiborne59716
Humphreys56119
Benton51018
Quitman5107
Kemper50019
Webster49514
Wilkinson42522
Jefferson39012
Franklin3866
Choctaw3757
Sharkey33517
Issaquena1254
Unassigned00

Alabama Coronavirus Cases

Cases: 264199

Reported Deaths: 3831
CountyCasesDeaths
Jefferson35310515
Mobile20626372
Madison14521153
Tuscaloosa13897173
Montgomery12844246
Shelby1127878
Baldwin9501138
Lee807167
Morgan740555
Etowah704870
Marshall695358
Calhoun6939126
Houston559140
DeKalb521843
Cullman490650
St. Clair466557
Limestone462446
Lauderdale452257
Elmore440070
Walker3914112
Talladega386157
Jackson373523
Colbert347948
Blount323146
Autauga294542
Franklin265534
Coffee260023
Dale247355
Dallas236832
Chilton235445
Covington234834
Russell23433
Escambia208832
Tallapoosa192692
Chambers189154
Clarke165422
Pike165215
Marion150236
Winston146325
Lawrence139936
Pickens129720
Geneva12929
Marengo127824
Bibb127038
Barbour121729
Butler121142
Cherokee108224
Randolph108022
Fayette102216
Hale102132
Clay95527
Washington94222
Henry9097
Monroe85311
Lowndes82930
Cleburne80914
Macon77522
Crenshaw73830
Lamar7348
Conecuh73215
Bullock71120
Perry7037
Wilcox65918
Sumter60122
Greene45818
Choctaw43620
Coosa3854
Out of AL00
Unassigned00
Tupelo
Clear
36° wxIcon
Hi: 60° Lo: 33°
Feels Like: 36°
Columbus
Clear
32° wxIcon
Hi: 60° Lo: 32°
Feels Like: 32°
Oxford
Clear
28° wxIcon
Hi: 57° Lo: 33°
Feels Like: 28°
Starkville
Clear
30° wxIcon
Hi: 59° Lo: 33°
Feels Like: 30°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather