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WSJ: China's HNA Group To Sell Entire Stake In Deutsche Bank

Chinese conglomerate HNA Group Co. intends to completely exit its investment in German banking giant Deutsche Bank (DB), the Wall Street Journal reported Friday, citing people familiar with the matter.

According to the WSJ report, HNA's decision to sell its entire 7.6 percent stake in Deutsche Bank comes after pressure from Chinese regulators and HNA's creditors
Chinese regulators and creditors have reportedly urged the cash-strapped conglomerate to shrink its balance sheet following three years of aggressive foreign acquisitions.

The WSJ reported that the Deutsche Bank state will be gradually sold by HNA over the next eighteen months.

HNA is also reportedly in talks to sell California-based technology distributor Ingram Micro Inc. and Zurich cargo handler Swissport International Ltd.

Germany's largest lender continues to struggle with its turnaround plan.

In late July, Deutsche Bank reported a 14 percent decline in profit for the second quarter on slightly lower revenues amid weakness in its core businesses. At that time, the bank also said it is on track to reduce its workforce, as previously announced, to below 93,000 by the end of 2018 and well to below 90,000 by the end of 2019.

In late May, Deutsche Bank announced more than 7,000 job cuts in its Equities Sales & Trading business, in its efforts to cut costs following weak trading performance.

DB is currently trading at $11.14 on the New York Stock Exchange, down $0.24 or 2.07 percent on a volume of 1.44 million shares.

by RTTNews Staff Writer

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