Country Garden falls on issuing discounted shares to Kingboard's unit

Kingboard Holdings

30/08/2023 05:11

** Shares of cash-strapped Country Garden Holdings  2007.HK 
fall 5.5% to HK$0.86
    ** Stock on track for the biggest one-day pct decline since
Aug 23, if trend holds
    ** Stock fifth biggest pct loser in Hang Seng Index  .HSI  
    ** Country Garden to issue HK$270 mln ($34.4 mln) worth of
new shares to investment unit of Hong Kong-based manufacturer
Kingboard Holdings  0148.HK , which will reduce its outstanding
loan to the unit to HK$1.6 bln
    ** China's largest private property developer plans to issue
350.65 mln new shares, or 1.25% of the enlarged share capital,
at HK$0.77 apiece, representing 15.4% discount to the previous
close
    ** Country Garden is due to report its first-half results
later on Wednesday
    ** Kingboard's shares fall as much as 5%
    ** Hang Seng Mainland Properties Index  .HSMPI  rises 1.4%, 
Hang Seng Composite Index tracking properties and construction
stocks  .HSCIPC  climbs 0.9%, and Hang Seng Index  .HSI  gains
0.5%



($1 = 7.8454 Hong Kong dollars)

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