Home prices are hitting new records in Shanghai and the government seems to be unhappy. The result for homebuyers could be minimum 50 percent down-payment levels and the upshot for developers could be lower demand for housing. Plus, China’s biggest developer invests $45 million in a fintech startup and the country’s biggest contractor may be digging itself out of a $3.5 billion dispute in the Bahamas. Read on for all these stories and more.
Shanghai authorities are preparing a fresh round of curbs aimed at cooling the city’s soaring property market, including potential restrictions on mortgages and loans to developers, according to people familiar with the matter.
The potential moves come after new home prices in China’s second-biggest city surged 27 per cent in July from a year earlier, and a plot of land sold for a national record price, prompting the cancellation of three other auctions in the past week. Read more>>
Shenzhen-based financial technology platform Penging said China Vanke Co Ltd, the giant residential property developer currently embroiled in a battle for its control, has signed an agreement to invest around 300 million yuan ($45 million), becoming the biggest shareholder in the fintech platform.
The announcement, made on Tuesday, did not clarify how many shares Vanke holds. Zhu Jiusheng, who was previously Vanke’s senior vice-president, will join Penging but his actual post has yet to be announced, according to the fintech platform’s news release. Read more>>
The government of the Bahamas says it has reached an agreement that will lead to the completion of a stalled mega-resort financed and built by Chinese state-owned enterprises.
Prime Minister Perry Christie announced late Monday that China State Construction Engineering Corp will finish the Baha Mar project, with financing from the Export-Import Bank of China. The complex will then be sold to a “world class” hotel and casino operator, he said. Read more>>
John Portman & Associates has designed a new high-end retirement community in Shanghai for Taikang Life Insurance Co. Once completed, the property will house up to 2,200 residents.
Located in the Songjiang neighborhood, Taikang Community Shen Garden will combine retirement living and health care facilities with commercial, educational and recreational amenities to create an active environment that encourages an engaged lifestyle of vitality. Read more>>
On a recent visit to Beijing, Beverly Hills Mayor John Mirisch stopped in at the headquarters of the Dalian Wanda Group. Wanda is China’s largest property developer, with $139 billion in assets including hotels, shopping malls, sports teams, and movie theaters. The company is expanding its entertainment horizons — gobbling up U.S. cinema chains and buying Legendary Entertainment earlier this year — while developing luxury properties around the world.
Now it’s looking to plant its flag in Southern California with a major hotel and condo project in Beverly Hills. Naturally, Mirisch wanted to drop by for a face-to-face meeting. Read more>>
S&P Global Ratings cut its outlook on China Vanke Co. to “negative” from “stable”, citing increased uncertainty due to ongoing tussle in China’s largest residential property developer.
“We revised the outlook on China Vanke to reflect the increasing likelihood that the tension among the key shareholders and the management team could ultimately weaken the company’s steady business execution and good financial discipline,” S&P wrote on Wednesday. Read more>>
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