Hui Ka Yan, the chairman of China Evergrande Group, sold 1.2 billion shares in the company on Thursday at an average price of HK$2.23 per share, according to Hong Kong Stock Exchange filings.
Hui's stake in the Shenzhen-based real estate company has been reduced from 77% to 67.9% as a result of the share sale, which is worth a total of HK$2.68 billion ($344 million).
Evergrande has been stumbling from debt deadline to debt deadline as it deals with more than $300 billion in liabilities, and Chinese authorities, according to sources, have told Hui, 63, to use some of his personal wealth to help pay bondholders.
Hui, the property developer's founder, is now releasing funds by selling high-end assets such as art, calligraphy, and three high-end homes.
Evergrande failed to pay coupons totaling $82.5 million due on November 6, and investors are waiting to see if the company can meet its obligations before a 30-day grace period expires on December 6.
Hui's share sale represented a 19.8% discount to the HK$2.78 closing price on Wednesday. According to exchange data, block trades priced at HK$2.23 per share were executed in the pre-market on Thursday.