Evergrande’s Xu Jiayin is trying not to think about the recent arrests at HNA
In today’s roundup of regional news headlines, debt-saddled China Evergrande announces plans to sell a large stake it holds in a mainland bank, developer China Aoyuan’s chairman teams with his Henderson Land counterpart to buy Aoyuan shares, and Hong Kong leader Carrie Lam is tipped to propose an increase in the city’s land and housing supply in her final policy address next week.
Evergrande to Sell $1.5B Stake in Shengjing Bank to State Firm
Cash-strapped China Evergrande Group said Wednesday that it plans to sell a RMB 9.99 billion ($1.5 billion) stake it owns in Shengjing Bank to a state-owned asset management company as it scrambles to raise funds.
After missing a bond interest payment last week, Evergrande faces a big test Wednesday with the deadline of another coupon payment of $47.5 million that investors are watching closely. Read more>>
China Aoyuan Chairman Teams With Henderson Land in Share Issue
China Aoyuan Group says its chairman, Guo Ziwen, will increase his position by buying shares worth HK$600 million ($77 million), and it has introduced Peter Lee, the executive director and co-chairman of Henderson Land Development, to subscribe for HK$400 million in new shares.
Lee agreed to subscribe for nearly 107.88 million shares, or 3.85 percent of the total shares, at HK$3.708 each on 27 September, an exchange filing said. This marked a 6 percent discount from Tuesday’s closing price of HK$3.95. Read more>>
Hong Kong Policy Address Could Push Developers to Boost Supply
As many as 10,000 new flats may become available for sale in the fourth quarter of this year in Hong Kong after Carrie Lam, the city’s leader, unveils a widely expected blueprint for increasing land supply to alleviate a housing shortage in her final policy address on 6 October.
New residential projects will be launched after Lam’s annual speech, which “will definitely” focus on land and housing supply issues, said Sammy Po, the CEO of Midland Realty’s residential division. Read more>>
China Evergrande Says Guangzhou Stadium Will Be Built
Heavily indebted China Evergrande rattled global markets last week when it defaulted on a bond payment, and now there are doubts whether it can finish constructing one of the world’s largest soccer stadiums, despite the developer telling Reuters on Monday that it will proceed “as normal”.
Residents and workers in the southern city of Guangzhou say the project appeared to slow down over the summer. Read more>>
Shenzhen Sells 21 of 22 Plots in Second Land Sale This Year
Shenzhen, China’s least-affordable city for homeownership, on Tuesday sold all but one of 22 plots even after the government capped the prices of new flats to help more people get on the property ladder.
The 21 sites fetched RMB 45.3 billion ($7 billion), just 7.34 percent above the minimum selling price of all 22 sites, with most of the lots swooped up by state-owned enterprises. Only one residential site in Baoan district, with a minimum price of RMB 1.77 billion, was withdrawn from sale, as it did not receive any bids. Read more>>
MTR Project at Hong Kong’s Tung Chung Draws Big Names
MTR Corporation says it has received a total of 35 expressions of interest for the Tung Chung Traction Substation Property Development.
Henderson Land, Sun Hung Kai Properties, Road King Infrastructure, Emperor International and Chinachem Group are said to have shown interest. Read more>>
Osaka Confirms MGM-Orix Joint Casino Bid
Osaka prefecture and the city of Osaka have officially announced a consortium comprising MGM Resorts and Japanese finance giant Orix Corp as their preferred partner to develop an integrated resort.
According to information released by authorities on Tuesday, the Osaka Prefecture IR Evaluation Committee gave MGM and Orix a total score of 788.5 points from a possible 1,000 under its RFP scoring system, with the prefecture and city subsequently determining that the consortium qualified as a partner to develop and operate an integrated resort. Read more>>
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