China's sportswear group Li Ning hits over 3-1/2-year low on property purchase plan

Henderson Land Development Co

11/12/2023 01:59

** Shares of Li Ning Co  2331.HK  drop 12.2% to HK$18.74,
their lowest since March 2020, after the Chinese home-grown
sportswear group plans to buy commercial property as its
headquarters in Hong Kong 
    ** Stock marks biggest intraday pct drop since Oct 26, and
is biggest pct loser in Hang Seng Index  .HSI , Hang Seng
Commerce & Industry Index  .HSNC  and Hang Seng China
Enterprises Index  .HSCE  
    ** Co has agreed to buy property "Harbour East" in North
Point, which comprises 22-storeys commercial/office space and
two storeys of retail areas, from Henderson Land  0012.HK  for
HK$2.21 bln ($282.9 mln) in a deal to be funded by internal
resources 
    ** Co says purchase of the property for use as its Hong Kong
headquarters demonstrates its confidence in its business
prospects in the city, and it will negotiate with existing
tenants for renewal while look for new tenants for the space not
yet leased
    ** Bigger rival ANTA Sports  2020.HK  down 1.8%
    ** Hang Seng Commerce & Industry Index  .HSNC  falls 1.2%,
Hang Seng China Enterprises Index  .HSCE  drops 1.3%, and Hang
Seng Index  .HSI  down 1%
    ** Li Ning stock down 71.3% YTD 

   ($1 = 7.8111 Hong Kong dollars)

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