Wednesday is here and today’s headlines are all about the money. More details have emerged about Evergrande’s $33.9 billion backdoor listing on the Shenzhen Stock Exchange while China Cinda has become the largest shareholder in Modern Land, a mainland developer focusing on green properties, and investors and authorities continue to play cat and mouse over the mainland’s capital controls.
Mainland property giant China Evergrande Group plans to engineer a back-door listing on the A-share market, aiming to inject most of its real estate assets and other non-property businesses into a listed vehicle that would have a market value of nearly RMB230 billion ($33.9 billion), according to a document for investors.
Evergrande, controlled by Hui Ka-yan, the mainland’s ninth-richest man with personal net worth of $9.6 billion, is seeking a capital injection of RMB30 billion from strategic investors before conducting the reverse merger deal. Read more>>
China’s policy makers are playing catch-up as investors get more creative in evading capital controls. The authorities are taking a series of steps to plug loopholes, such as a potential plan to curb transactions that use the bitcoin digital currency to take funds out of the country, as well as a statement from UnionPay Co. limiting mainlanders from using its cards to buy insurance in Hong Kong.
These add to more traditional measures, including an order seen as asking mainland banks to reduce foreign-exchange sales. These measures, all reported in the past two weeks, follow a period during which Chinese officials and state media stepped up efforts to talk up the Renminbi. Read more>>
Hong Kong-listed Modern Land (China) Co Ltd, a real estate developer of green technological properties, has entered into a subscription agreement with China Cinda (HK) Asset Management Co Ltd, making it the second largest shareholder of Modern Land.
With the cooperation, Modern Land will replenish its capital base, integrate resources from property and financial business and upgrade market competitiveness. China Cinda (HK) Asset Management is a wholly owned subsidiary of China Cinda Asset Management Co. Read more>>
Hong Kong’s new stamp duty only offers a breather for the city’s property bubble. The special administrative region has nearly doubled its tax on real-estate sales to 15 percent across the board in the hope of cooling surging prices. It’s the toughest measure yet, but continued capital inflows from China will blunt the impact.
Home prices in the former British colony have been rallying in recent months. Government data show prices in September jumped to an 11-month high, only 3.5 percent shy of last year’s all-time peak. Capital inflows from China are probably driving this surge: in the same month, transactions topped 7,800, representing an increase of over 80 percent year-on-year. Read more>>
Developer Keppel Land has achieved brisk new home sales at its two projects in Ho Chi Minh City, Vietnam, in recent months.
About 800 units were booked at two waterfront residential developments, Palm City and The View at Riviera Point, the company said. The units sold included 135 landed homes ranging from terraced to semi-detached houses at Palm Residence, phase one of the Palm City project. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.