China Vanke CEO Yu Liang saw his stock slide quickly today as trading resumed
China’s stock markets stablised yesterday, perhaps with a bit of help from the National Team, but that didn’t prop up shares in China Vanke which resumed trading today. There are also signs this week of two more Hong Kong developers looking to limit their downside on the mainland. Read on for all the headlines.
Vanke Shares Drop 14% as Developer Resumes Trading
China Vanke Co., the developer whose shares were halted last month amid a battle for control with its largest shareholder, tumbled the most in a year-and-a-half after resuming trading in Hong Kong on Wednesday.
The shares dropped as much as 14 percent, the most since June 26, 2014, and were 12 percent lower at HK$19.90 as of 9:36 a.m. local time. The stock of China’s largest publicly traded developer traded on the Shenzhen stock exchange will remain suspended pending an asset restructuring and share sale. Read more>>
New World Again Tries to Privatise Its China Operations
New World Development Co., controlled by the family of 90-year-old Hong Kong billionaire Cheng Yu-tung, is planning an offer to take its $7 billion China unit private, a person with knowledge of the matter said.
New World Development could make an announcement as soon as this week on a bid to buy the shares it doesn’t already own in New World China Land Ltd., the person said, asking not to be identified as the information is private. Read more>>
ICBC Helps Out Kuafu NY Project with $211M Loan
Industrial and Commercial Bank of China provided a $211.6 million loan to Kuafu Properties and the U.S. arm of Shanghai Construction Group to fund the two firms’ acquisition of 1 MiMA Tower, according to city records.
The $260.8 million purchase leaves the partnership with the top 13 floors of Related Companies’ and TIAA-CREF’s MiMA, a 63-story residential tower at 460 West 42nd Street in Manhattan. Kuafu and SCG plan to convert the 151 rental units into “affordable luxury” condominiums. The financing from ICBC carries an 81 percent loan-to-cost ratio, based on the acquisition price. Read more>>
SOCAM Dumps Guizhou Project for HK$463M
Socam Development is the latest developer to exit the mainland’s third-tier cities after it agreed to sell a residential-commercial site in Guizhou to Chinese developer Country Garden for HK$463 million.
The developer and contractor expects the sale to record a loss of HK$245.9 million because the carrying value of the site in Zunyi was lifted by the fair value increase of HK$221 million previously recognised by the group in its consolidated income statement, according to its filing to the Hong Kong stock exchange ahead of the opening of the stock market. Read more>>
Evergrande Says 2015 Sales Were 11% Over Target
Evergrande Real Estate Group (3333) yesterday said contracted sales came in at 111.9 percent of its enlarged target of 180 billion yuan (HK$213.51 billion yuan) for last year.
China’s third largest developer generated total contracted sales of 201.34 billion yuan from 25.51 million square meters in area sold, up 53.1 percent and 40.2 percent year on year, respectively. It said the contracted average selling price rose 9.2 percent to 7,892 yuan per square meter from a year earlier. Read more>>
New Year Means New Bonds for Mainland Developers
Shenzhen-based developer Fantasia Holdings said on Tuesday it has completed issuance of 1.1 billion yuan (HK$1.31 billion) worth of five-year corporate bonds, in the latest instance of a Hong Kong-listed company actively tapping mainland-based financing channels amid the government’s ongoing support of the real estate sector.
Shanghai-based Future Land Development said Tuesday that it had recently obtained a total of 15 billion yuan in new bank credit lines from two mainland banks. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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