Chinese authorities are examining the role of PwC in Evergrande’s financial reporting
Chinese authorities are examining the role of bankrupt developer Evergrande’s former auditor, with that story leading today’s headline roundup. US-based DigitalBridge is also making news as it readies a bid for Australian data centre firm AirTrunk, while Japan’s Seibu is said to be considering the disposal of a central Tokyo office building.
China Scrutinising PwC’s Role in $78B Evergrande Fraud Case
Chinese authorities are examining the role of PricewaterhouseCoopers in China Evergrande’s accounting practices after the developer was accused of a $78 billion fraud, ramping up pressure on the global accounting giant that audited a slew of builders before the sector’s meltdown.
The country’s securities regulator this week accused Evergrande’s main onshore subsidiary, Hengda Real Estate, of recognising sales in advance and massively overstating its revenue in the two years through 2020, prior to Evergrande’s default. Read more>>
DigitalBridge Joins Race to Buy Australia’s AirTrunk
DigitalBridge could join the fight to purchase a stake in Australian data centre operator AirTrunk.
The US-based asset manager, which focuses on digital infrastructure and AI investments, is said to be lining up a bid for AirTrunk, which provides hyperscale data centres across Asia Pacific. Read more>>
Japan’s Seibu Considers Sale of Tokyo Office Building for $1.9B
Japan’s Seibu Holdings is considering selling a high-end office building in central Tokyo for at least JPY 300 billion ($1.9 billion), people familiar with the matter said, in what would be one of the country’s biggest property deals on record.
The potential sale of the 36-storey Tokyo Garden Terrace Kioicho office and hotel complex is aimed at helping Seibu free up its balance sheet, something Japanese firms are increasingly looking to do amid pressure from shareholders and regulators for better use of capital. Read more>>
Ping An Says Profit Will Recover After Earnings Disappoint
Ping An Insurance expects profitability to recover after a 23 percent drop in full-year net income led its shares to post their biggest fall since November 2022.
While 2023 was “very challenging” due to macroeconomic and market conditions, “we believe we’ll see continued improvement from this year onward”, co-CEO Michael Guo told Bloomberg. He said risks including exposure to the property sector are “controllable” and the company has set aside sufficient reserves, while the backbone life business saw continued growth in the first quarter. Read more>>
Shapoorji Pallonji in Talks to Raise $2.4B From Lenders Including PFC
Shapoorji Pallonji Group is in talks with lenders including state-run Power Finance Corp, seeking to raise as much as INR 200 billion ($2.4 billion), people familiar with the matter told Bloomberg.
The group, controlled by Indian billionaire Shapoor Mistry, has reached out to Power Finance for up to INR 150 billion, the largest chunk in the planned fundraising, the people said, asking not to be identified discussing private details. Negotiations are ongoing and details of the lending could change, they told Bloomberg. Read more>>
CK Group’s Li Says Hong Kong Needs to Safeguard Financial Hub Status
The Hong Kong government needs to protect the city’s international financial hub status after years of upheaval, CK Group chairman Victor Li said Thursday.
Li was speaking after his property company CK Asset, one of Hong Kong’s biggest developers, reported a 10 percent decline in net profit from continuing operations last year. Read more>>
CK Asset Shares Fall 11% After Company Declares 20% Profit Dip for 2023
CK Asset’s shares fell sharply Friday after the Hong Kong property developer reported a profit decline for 2023 and lowered its dividend. Shares dropped 11 percent to 32.60 Hong Kong dollars in Friday morning trade.
The company controlled by Hong Kong billionaire Li Ka-shing on Thursday reported 2023 net profit of HK$17.34 billion ($2.22 billion), down 20 percent from the prior year. Revenue fell to HK$71.08 billion from HK$79.55 billion a year ago. CK Asset said the contribution from property sales fell in 2023 due to a scaling back of its property-development business. Read more>>
China’s Longfor Group Says Profit Fell 50% Last Year
Chinese property giant Longfor Group reported a near 50 percent slump in net profit for last year, while revenue from home sales plunged because of the sluggish housing market.
Net profit came in at RMB 12.85 billion ($1.8 billion) in 2023, compared with RMB 24.36 billion a year earlier, the company said in a filing to the Hong Kong stock exchange on Friday. Read more>>
Thailand’s TCC Assets Ready for Grand Opening of $3.1B One Bangkok Complex
TCC Assets (Thailand), a property arm of the billionaire Sirivadhanabhakdi family, is transforming Bangkok’s Rama IV Road with the launch of the THB 113 billion ($3.1 billion) One Bangkok mixed-use project, following its investment of nearly THB 39 billion in developing six projects along the same road.
Panote Sirivadhanabhakdi, the company’s director, said that One Bangkok, set to add 500,000 square metres (5.3 million square feet) of new office space, would not lead to an oversupply but instead pose a challenge for older office buildings. Read more>>
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