HK-listed Jinke Smart Services plunges 35% on loan to parent co

Jinke Smart Services Co

01/08/2022 04:51

** Shares in Jinke Smart Services Group  9666.HK  fall as
much as 35% to HK$10.08, their lowest since 2020 listing
    ** According to an onshore filing, Jinke Smart Services will
loan up to 1.5 bln yuan ($222.28 mln) to parent Jinke Property
 000656.SZ  on an annual rate of 8.6%
    ** The loan, which will be used for replenishing parent's
working capital, will be repaid in instalments before expiring
on Dec. 20, 2024 
    ** Jinke Property will provide up to 42,000 car parking
spaces and 200 retail properties, worth a total of 2.7 bln yuan,
as collateral for the loan 
    ** Jinke Property holds around 30.3% of the issued share
capital of Jinke Smart Services
    ** "We are highly concerned with this intra-group
arrangement involving two listed companies," says Will Chu,
analyst at CGS-CIMB Securities (Hong Kong) Ltd
    ** He says the loan shows the liquidity condition of Jinke
Property has gotten worse 
    ** Jinke Property listed in Shenzhen eases 1.9%
    
($1 = 6.7483 Chinese yuan)

 ((clare.jim@tr.com))