How HNA May Sell Deutsche Bank and Why That Matters

Deutsche Bank AG’s largest investor is on the way out. The stake owned by heavily-indebted Chinese conglomerate HNA Group Co. may dribble back into the market or, according to one recent report, be sold to another investor. How HNA executes its retreat will have big implications for Deutsche Bank. It will also be an object lesson in what happens when a favorite tactic of Chinese companies in expansion mode unravels.

The Chinese company that spent more than $40 billion on acquisitions across six continents, is under pressure to sell assets to pay its debts. Worried by the foreign borrowings of some large conglomerates, the Chinese government has told it to unload everything outside its core airline business, people familiar with the matter have said.