Evergrande boss Xu Jiayin has bought up 5% of China Vanke
The battle for control of China’s largest property developer continues to stay in the headlines this month now that Evergrande has bought up a 5 percent stake in China Vanke. And there’s some good news for many home-builders as ratings agency Fitch predicts high housing demand for the next 15 years. Meanwhile, Anbang denies bidding for IHG and much more if you just read on.
Evergrande Invests $1.5B to Buy 5% of China Vanke
Billionaire Xu Jiayin’s property group boosted its stake in China Vanke Co., the developer at the center of a protracted ownership tussle, to 5 percent.
Companies controlled by China Evergrande Group paid 9.97 billion yuan ($1.5 billion) for mainland-listed A-shares between July 25 and Aug. 8, Vanke said in a filing on Monday to Shenzhen’s stock exchange. Evergrande last week said that it had a 4.68 percent holding. Read more>>
Fitch Says China Housing Demand Will Stay Strong Through 2030
China’s housing demand will remain relatively resilient over the next 15 years, according to a Fitch Ratings report, but oversupply risk grows if homes are built at the current pace.
China would need to build 800 million square metres of residential space – the size of Singapore – a year up to 2030 to meet demand, Fitch said on Monday. Read more>>
Anbang Denies Desire to Buy Holiday Inn Parent IHG
Chinese insurance giant Anbang has denied it’s considering bidding for Intercontinental Hotels Group (IHG).
The Sunday Times reported that Anbang, which recently failed in an attempt to buy Starwood, held talks about making a 7 billion offer for the hotel giant. Read more>>
CCCI Offshore Defaults Raise Questions on Dim Sum Bonds
It was only a matter of time before defaults emerged in China’s self-extolled offshore bond market. The disruption that has ensued is telling.
China City Construction International defaulted on 2.5 billion yuan of debt in recent weeks, making it the first credit event in the market for so-called dim-sum bonds—yuan-denominated bonds traded Hong Kong. The market was meant to be a proving ground for the internationalization of China’s currency. Read more>>
Battle for China Vanke Shines Light into Mainland Shadow Banking
China’s most high-profile battle for corporate control is casting a spotlight on one of the murkiest corners of its booming shadow-banking system.
For almost eight months, the nation’s biggest developer, China Vanke Co. has been trying to fend off a little-known firm it depicts as a corporate raider. Amid the finger-pointing, a more important issue for regulators and investors in China’s securities markets may lie in the way the investor – Baoneng Group — has financed some of its stock purchases to become Vanke’s biggest shareholder. 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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