Shimao Services hits record low on acquisition, parent firm sinks

Shimao Services Holdings

14/12/2021 03:32

** Shares of Shimao Services Holdings  0873.HK  fall 21.9%
to HK$5.56, lowest since debut in October 2020 and also
biggest-ever daily pct drop, extending losses for a fifth
consecutive session 
    ** Stock top decliner on Hang Seng Composite Index tracking
properties and construction stocks  .HSCIPC  and third-biggest
loser on the Hong Kong bourse
    ** Co has agreed to buy property management services from
sister firm Shanghai Shimao  600823.SS  for 1.65 bln yuan
($259.14 mln), in a bid to expand into commercial property
management segment  urn:newsml:reuters.com:*:nFWN2SW0AR urn:newsml:reuters.com:*:nP8N2SV039
    ** "The move will allow Shimao Services to enter the
commercial property segment going forward. Prior this, Shimao
Services was not allowed to enter the commercial property
management segment due to non-competition pledge with Shanghai
Shimao," - CGS-CIMB Securities 
    ** Shimao Group, which owns Shimao Services, drops 12.4% to
HK$6.20, lowest since January 2012  urn:newsml:reuters.com:*:nL4N2SY1E0
    ** Hang Seng Composite Index tracking properties and
construction stocks  .HSCIPC  falls 2.6% and Hang Seng Index
slips 1.3%

($1 = 6.3671 Chinese yuan renminbi)

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