Evergrande sells stake in HengTen, the Netflix of China

China's debt-laden real estate firm Evergrande has announced that it was raising USD 273 million by selling all stake in film production and streaming company HengTen Networks. The network is known to be Chinese equivalent of Netflix.

Hong Kong-based Allied Resources Investment Holdings snapped up HengTen for HK$1.28 a share, a 24 percent discount on its Wednesday close, according to a filing with Hong Kong's stock exchange. 

Evergrande crisis has spooked Chinese real estate sector and has even global investors watching. Evergrande is China's biggest real estate firm and has USD 300 billion in liabilities. 

Alarm bells began to ring about privately owned property giant Evergrande earlier this year when it struggled to make a series of repayments on domestic and foreign bonds. It is feared that collapse of Evergrande would result in a domino effect in Chinese economy which will spill-over into global markets.  

Evergrande has since scrambled to sell assets to raise cash.

Last week it met a deadline to pay overdue interest on three US-dollar bonds before their grace periods ended.

Meanwhile, Hong Kong media have reported that the firm's chairman Hui Ka Yan is offloading some of his personal fortune to raise cash, including a luxury property in the finance hub's ritzy Peak district. 

(With inputs from agencies)