Shimao Group set for best day on report of putting all property projects on sale

Shimao Services Holdings

10/01/2022 07:38

(Updates)
    ** Chinese property developer Shimao Group Holdings'
 0813.HK  shares soar as much as 25.7% to HK$5.91, biggest daily
pct gain since debut in July 2006
    ** Stock hits highest since Dec. 17, on course to snap two
sessions of losses; biggest pct gainer in Hang Seng Composite
index tracking properties and construction stocks  .HSCIPC 
    ** Shimao has put all its projects on sale, local media
reported, as Chinese property developers face mounting pressure
to negotiate with their creditors to ease a liquidity squeeze in
a sector that is threatening to push more firms into default
 urn:newsml:reuters.com:*:nL1N2TQ03R
    ** Company has struck a deal with a Chinese state-owned firm
to sell its Shimao International Plaza Shanghai for over 10 bln
yuan - report
    ** Daiwa downgrades Shimao's shares to "hold" from "buy",
cuts PT to HK$5.20 from HK$20, saying the company will find
itself in a "vicious cycle of liquidity issues" given the recent
negative news, even though Shimao said it is not in debt
servicing default
    ** Company's property services unit Shimao Services
 0873.HK  jumps 14%
    ** Hang Seng Mainland Properties index  .HSMPI  soars 3.8%
and  .HSCIPC  surges 1.9%, while the Hang Seng index  .HSI 
rises 1%

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