HONG KONG - Evergrande Group's chief executive is holding talks in Hong Kong with investment banks and creditors over a possible restructuring and asset sales, two people said, as the Chinese developer battles against default on more than $300 billion in debts.

CEO Xia Haijun, a confidant of chairman Hui Ka Yan and who runs Evergrande's day-to-day operations including financing, has been in Hong Kong, where the property firm has a major presence, for more than two months, the two sources told Reuters.

A third source said Xia was talking to banks and creditors in Hong Kong, but did not say what was being discussed.

Xia's talks with investment banks and creditors in Hong Kong has not previously been reported.

Evergrande Group's chief executive is holding talks in Hong Kong with investment banks and creditors over a possible restructuring and asset sales, two people said, as the Chinese developer battles against default on more than $300 billion in debts.  (Reuters / Reuters Photos).

Chinese state-owned Yuexiu Property has pulled out of a proposed $1.7 billion deal to buy Evergrande's Hong Kong headquarters building over worries about the developer's dire financial situation, Reuters reported on Friday.

The second source said Xia had been meeting Chinese investment banks in the city to explore possible asset sales.

Evergrande, once China's top-selling developer, has said that it is looking to dispose of stakes in assets including its services and electric vehicle units to raise funds.

The developer said last month it had appointed Houlihan Lokey and Admiralty Harbour Capital as joint financial advisers to examine its financial options, as it warned of default risks amid plunging property sales