Chinese Estates Holdings, the second-biggest shareholder of embattled developer China Evergrande, said on Thursday it has sold $32 million worth of its Evergrande stake and plans to exit the holding completely.

“The directors are cautious and concerned about the recent development of China Evergrande Group including certain disclosure made by China Evergrande Group on its liquidity,” Chinese Estates said in a filing to the Hong Kong stock exchange.

With $305 billion in liabilities, Evergrande is struggling to meet its debt obligations and investors worry that the rot could spread to creditors including banks in China and abroad.

Shares of Chinese Estates jumped as much as 15.1% in early trading to HK$2.51, notching the biggest daily percentage gain since June 2020.

China Evergrande stock soared as much as 32% in the biggest daily percentage rise since listing in November 2009, after its unit said on Wednesday it had “resolved” a coupon payment on an onshore bond. Chinese Estates, which owned about 6.50% of Evergrande’s equity capital as of Sept. 10 according to Refinitiv Eikon data, said it has mandated a sale of all or part of the remaining 5.66% Evergrande stake either on the market or through block trades.

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