HONG KONG, May 25 (Reuters) - Shenzhen Investment Ltd said it would sell four property and hotel assets to China Evergrande Group for 5.42 billion yuan ($788 million), walking away from projects in third and fourth-tier cities to enhance its financial position.
The Chinese developer said it would book a HK$2.9 billion gain from the sale to Evergrande's Hengda Real Estate Group.
Shares of Shenzhen Investment rose to a 5-week high before paring gains to be up 0.6 percent and in line with the broader market. Evergrande's stock jumped as high as 6.9 percent to a new record of HK$12.46.
$1 = 6.8760 Chinese yuan) ($1 = 7.7896 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Edwina Gibbs)