(Yicai Global) Aug. 2 -- China Evergrande Group’s shares jumped after the heavily indebted Chinese real estate giant said it will raise HKD3.25 billion (USD418 million) in cash by selling more of its internet unit Hengten Networks Group, whose own stock skyrocketed.

Evergrande [HKG:3333] ended up 7.2 percent today at HKD5.64 (73 US cents), after earlier gaining as much as 8.6 percent. But the stock is still down more than 70 percent from this time last year. Hengten [HKG:0136] finished almost 47 percent higher at HKD5.08 after trading in its shares, suspended since July 29, resumed today.

The Guangzhou-based developer will sell 7 percent of Hengten to existing investor Tencent Holding for HKD3.20 (41 US cents) a share as well as 4 percent to an undisclosed buyer, Evergrande said in a stock exchange filing yesterday.

Evergrande has been working to cut its liabilities for more than a year, as China’s authorities tightened financing rules for real estate firms to mitigate financial risk. It had already sold an 8 percent stake in Hengten to Ke Liming, founder of Pumpkin Film, for HKD4.4 billion in June.

After the latest deal Evergrande will remain Hengten’s controlling shareholder with 26.6 percent, followed by Tencent, whose holding will rise to 23.9 percent. Ke held 20.5 percent after June’s sale.

Founded in 2015 by Evergrande and Shenzhen-based Tencent, Hengten owns Pumpkin Film as well as film and television producer Ruyi Film. It reported an 87 percent plunge in net profit to CNY12 million (USD1.9 million) last year after operating revenue fell 32 percent to CNY230 million (USD35.5 million).

Editor: Futura Costaglione