Deutsche Bank hit by reports HNA under pressure to exit stake

Under pressure from its own government, China's HNA Group was preparing to exit its remaining 8.8% stake in the German lender over the next 18 months, the Journal reported overnight.

Straining under its own debt burden, HNA was also said to be looking to divest its stakes in Ingram Micro and Swissport International.

Also according to the Journal, who cited unidentified people familiar with the matter, Beijing had asked the industrial conglomerate, whom it had helped to raise cash earlier in 2018, to focus on its travel business.

The majority of the stake was held through financial derivatives contracts, Bloomberg said, which might limit the impact on the share price from any sale.

Nevertheless, news of HNA's departure was expected to come as a heavy blow at Deutsche, whose share price had already plummeted by roughly 40% year-to-date as the lender struggled to right its situation.

As of 1552 BST, shares of Deutsche Bank were 1.53% lower to €9.62.