Chinese developer Shimao shares rise nearly 5% after more asset disposals

C C Land Holdings

31/01/2022 03:55

HONG KONG, Jan 31 (Reuters) - Shares of cash-strapped Shimao
Group  0813.HK  rose on Monday after the Chinese developer and
its chairman sold a Shanghai hotel and a stake in a Hong Kong
development, respectively, for a total of $836 million, in their
latest efforts to raise funds.
    The disposals come after Shimao put up its assets worth 77
billion yuan ($12.11 billion) for sale to raise cash to repay
its debts, offloading two other assets in the past two weeks for
3 billion yuan.  
    The Shanghai-based developer said late on Friday it sold
Hyatt on the Bund to state-owned Shanghai Land (Group) Co for
4.5 billion yuan.  urn:newsml:reuters.com:*:nL4N2U83B9
    Its chairman Hui Wing Mau also sold his 40% stake in a Hong
Kong high-end residential development to Hong Kong investors CSI
Properties  0497.HK  and C C Land Holdings  1224.HK  for HK$1.05
billion ($134.68 million), according to separate statements from
the buyers late on Friday. 
    Chinese state-owned property firms are expected to acquire
more assets from private developers facing tight liquidity,
analysts said, as Beijing steps up efforts to stabilise and
tighten control over a crisis-hit sector that accounts for a
quarter of its economy.  urn:newsml:reuters.com:*:nL1N2U5069
    Financial media outlet Cailianshe reported over the weekend
a state-owned healthcare real estate firm in the northeastern
province of Shandong may become China Aoyuan Group's  3883.HK 
controlling shareholder, and it has completed the preliminary
due diligence. 
    Shares of Shimao gained 4.8%, while Aoyuan rose 6.8%. The
Hang Seng Mainland Properties Index  .HSMPI  was up 2.2%.    

($1 = 6.3605 Chinese yuan)
($1 = 7.7962 Hong Kong dollars)

 (Reporting by Clare Jim; Editing by Jacqueline Wong)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))