HONG KONG - Chinese conglomerate Fosun halted stock trading in Hong Kong on Monday ahead of an upcoming announcement in what Bloomberg News reported would be the sale of its stake in a steel company to raise much-needed liquidity.
Fosun is one of China's largest private-sector conglomerates with a sprawling empire that includes pharmaceuticals, real estate, tourism and finance.
It is also one of a number of major Chinese companies with debt issues, facing as much as $8 billion in bond repayments through 2023.
In a statement to Hong Kong's stock exchange Fosun said it was suspending share trading "pending the release of possible inside information".
The move came as Bloomberg reported per unnamed sources that Fosun had agreed to sell its stake -- about 60 percent -- in the parent company of Nanjing Iron and Steel for 15 billion yuan ($2.1-billion).
Nanjing Iron and Steel also halted trading in Shanghai on Monday.
Chinese companies have faced growing scrutiny over their debt exposure, especially those in the property sector.
Beijing has also launched regulatory investigations in multiple sectors, including education and technology businesses, clipping their growth.
Fosun's debt stood at 261 billion yuan as of June 30, up from 237 billion yuan at the end of last year, according to an earnings report in August.
It has also been downgraded by Moody's, which cited weak liquidity and a weakening portfolio amid asset sales.
Club Med, fashion house Lanvin and English Premier League football club Wolverhampton Wanderers are among some of the prominent western brands Fosun owns.