HNA is reportedly poised to dump its whole stake in Deutsche Bank as well as much of the foreign investments it made in a $40 billion spending spree that overloaded the Chinese conglomerate with debt.

HNA is planning to sell down its entire stake in the Frankfurt-based bank, according to «The Wall Street Journal,» citing sources familiar with the move. The Hainan island-based group plans to whittle its 7.9 percent Deutsche stake over the next 18 months, the newspaper reported.

The move is part of a bid to alleviate its rising debt burden, including by selling luxury real estate and seeking to renegotiate its financing with banks including UBS. The decision to offload Deutsche and unwind other holdings was set before HNA Chairman Wang Jian died after falling from a French chateau in July, in an apparent accident.

Aviation Beginnings

HNA itself was coy: «We are committed to streamlining our strategy to focus on our core aviation, tourism and logistics businesses, improve our operations and strengthen our balance sheet,» the paper quoted an HNA spokesman.

The conglomerate began in 1990 as an regional airline, but its holdings now range from the U.S.-based Radisson Hotel Group to Avolon, which leases planes. The conglomerate ran into trouble in the U.S. over planned, then scotched, purchase of Skybridge after the hedge fund's founder Anthony Scaramucci headed for government.

IPO Snag

Germany's regulator is also nosing around HNA's acquisition of the Deutsche stake, which ex-CEO John Cryan was also famously wary of. HNA already began reducing its stake in Deutsche earlier this year.

Bankers have urged HNA to step up its disposal campaign, which hit a snag in April when the conglomerate backed away from two planned IPOs in Switzerland in short order. The Chinese firm is doing the right thing, one said, but must do so more swiftly and forcefully.

HNA is viewed by experts as enjoying the favor of China's government, which is slowly opening up the country's economy. The conglomerate would be shored up by the state if need be, according to experts.