HNA Group further cuts stake in Deutsche Bank

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Europe

HNA Group, once the biggest stakeholder in German finance giant Deutsche Bank, has cut its holding in the bank from 8.8 to 7.9 percent, as concerns remain over the internal finances of both sides.

In a filing to US regulators, HNA Group announced the second cut to its stake in Deutsche Bank this year, after selling off shares in February that reduced its holding from 10 percent. That reduction saw Qatar overtake HNA as Deutsche Bank’s biggest stakeholder, with the Chinese conglomerate saying at the time it had no further plans to reduce its holding in the bank.

However, since then HNA Group has sold off various assets including its stake in luxury hotel chain Hilton and billions of US dollars’ worth of property, as it tackles mounting debts. The conglomerate has approximately 20 billion US dollars’ worth of bonds expiring this year and in 2019, and is looking to raise 16 billion US dollars by July, according to Bloomberg.

Deutsche Bank meanwhile has struggled with its own internal problems, following three consecutive years of losses. Earlier this month, the banking giant replaced its CEO, with Deutsche’s board of directors reportedly losing faith in the abilities of ousted chief John Cryan less than three years into the job.

Last December, HNA Group’s acquisition of its stake in Deutsche Bank was reportedly being queried by Germany’s financial watchdog Bafin, as question marks arose over the way it reported its holdings at the time. HNA Group firmly denied any wrongdoing at the time, saying in a statement “its disclosures of Deutsche Bank shareholdings have been and are correct.”