China Aoyuan Group Limited (SEHK:3883) announced plans to put its stake in a listed subsidiary up for sale, as indebted mainland developers struggle to raise cash amid rising debts and a prolonged market downturn. The Guangzhou-based company posted a statement on its official website saying it intended to sell a 29.9% stake in Hong Kong-listed property services unit Aoyuan Healthy Life Group Company Limited (SEHK:3662) by December 19, 2022. However, neither company has posted a filing with the Hong Kong stock exchange yet.

Bidders are expected to pay a preliminary deposit of HKD 5 million for the stake and a further amount equal to 20% of the purchase price, according to the statement, but a target price for the whole stake was not disclosed.