Evergrande sells non-core business

Company remains heavily indebted, with falling profits and vulnerable to interest rate increases

China Evergrande, one of the Chinese mainland's top two real estate companies, has decided to sell all of its non-core businesses in the grain and oil, dairy products and spring water sectors for the aggregate price of 2.7 billion yuan ($409 million), in order to put more focus on its property development business, as mainland house prices are going wild recently.

The Guangdong-based developer will sell its grain and oil business for 600 million yuan, the dairy products business for 300 million yuan and the spring water business for 1.8 billion yuan, according to a filing made to the Hong Kong Stock Exchange.