Cash-strapped Chinese conglomerate HNA cut its stake in Deutsche Bank AG further, less than two months after saying it intended to stay “a major investor” in the German lender.
HNA’s total interest fell to 7.64 percent from 7.96 percent, the Frankfurt-based bank said in a regulatory statement. The portion of that stake that the company holds directly declined to 3.69 percent from from 5.45 percent.
HNA is trying to sell as much as $16 billion in assets to strengthen its balance sheet after a rapid and largely debt-financed expansion outside China in previous years. It had held as much as 9.9 percent in Deutsche Bank through a combination of outright holdings and options positions in 2017.
HNA had already cut its overall interest in Deutsche Bank twice this year, mainly by allowing portions of a complex options-based position to expire. On both occasions, it had said it remained committed to the bank. HNA’s partial retreat has contributed to the broader downward pressure on Deutsche Bank’s share price this year.
Deutsche Bank’s shares hit a record low last week after a credit rating downgrade from S&P Global Ratings. The stock was up 0.4 percent at 9.46 euros as of 4:29 p.m. in Frankfurt.
