China property IPOs face a problem of plenty

Kwg Living group

12/11/2020 03:07

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Nov 12 (Reuters Breakingviews) - Developers from
Sunac to Evergrande are listing management units in Hong Kong,
offering exposure to real estate without the usual policy risk.
That only goes so far to justify towering valuations as the
scarcity value of these asset-light, fast-growth businesses is
fading fast. 
    Full view will be published shortly.
    On Twitter https://twitter.com/JennHughes13
    
    CONTEXT NEWS
    - Chinese property manager Sunac Services on Nov. 6 launched
an initial public offering seeking to raise up to $1.1 billion
in Hong Kong, a day after rival KWG Living kicked off another
deal seeking up to $800 million. 
    - At least 12 real estate developers have floated their
property management units in Hong Kong in the past twelve
months. Two, including Sunac, are currently marketing their
shares to investors and another six, including Evergrande, have
filed applications to list with the Hong Kong exchange.     
    - For previous columns by the author, Reuters customers can
click on  HUGHES/ 
    - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: http://bit.ly/BVsubscribe

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Property management firms Shimao Services, KWG Living slide in
Hong Kong debut      urn:newsml:reuters.com:*:nL1N2HL07Q
Evergrande sells property management unit stake for $3 bln ahead
of possible IPO     urn:newsml:reuters.com:*:nL4N2FG0VB
BREAKINGVIEWS - Beijing comes banging on real estate’s door   
 urn:newsml:reuters.com:*:nL4N2HD2XT
BREAKINGVIEWS - China Evergrande pawns the family silver    
 urn:newsml:reuters.com:*:nL4N2FJ09I
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Una Galani and Katrina Hamlin)
 ((jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))