Former Private Equity Highflier Ditches Hong Kong Insurance Unit

A formerly highflying Chinese private-equity firm that attracted attention for its debt-fueled expansion has now gone into reverse, offloading another major asset to ease a liquidity crunch.

The private equity arm of Jiuding Group said it will sell its FTLife Insurance Co. Ltd. to a subsidiary of Hong Kong-listed New World Development Co. for HK$21.5 billion ($2.75 billion), according to a Thursday statement from the Beijing-based company whose formal name is Tongchuangjiuding Investment Management Group Co. Ltd. It said it was taking the step to “reduce the company’s debt-to-asset ratio and financial expenses.”