China developer LVGEM jumps most in near 10 years after deal with Vanke's unit

Cathay Real Estate Development

08/06/2022 03:12

** Shares of LVGEM (China) Real Estate Investment Co Ltd
 0095.HK  soar as much as 43.7% to HK$1.25, their biggest daily
pct gain since September 2012
    ** Stock hit the highest since April 20; biggest pct gainer
in Hang Seng Composite Index  .HSCI  and Hang Seng Composite
Index on properties and construction stocks  .HSCIPC 
    ** Chinese property developer says China Vanke Co Ltd's
 000002.SZ  unit, Shenzhen Shenquan Real Estate Development Co
Ltd, has agreed to inject 2.3 bln yuan ($345 mln) into Shenzhen
Sida Industrial Development Co Ltd, with 171.3 mln yuan for
taking an 8% stake and 2.1 bln yuan as capital reserve for the
unit  urn:newsml:reuters.com:*:nFWN2XU05F
    ** LVGEM's stake in Shenzhen Sida will be reduced to 92%
from 100%
    ** Says the deal would enable Shenzhen Sida to raise funds
for its development project in Shenzhen City's Nanshan District,
reducing reliance on the company for financial support
    ** Hong Kong shares of China Vanke  2202.HK  gain 0.4%,
while Shenzhen-listed stock  000002.SZ  eases 0.7%
    ** Hang Seng Composite Index on properties and construction
stocks  .HSCIPC  slips 0.1%, Hang Seng Composite Index  .HSCI 
climbs 1.4% and Hang Seng Index  .HSI  rises 1.5%
    ** As of last close, LVGEM stock had fallen 36.5% this year


($1 = 6.6660 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))