China

Chinese Estates Holdings Acquires 788.7 Mln Shares in China Evergrande

Summary:

  • Chinese Estates Holdings Ltd (0127.HK) announced on October 3 that it has recently purchased 788.7 million shares in China Evergrande Group (3333.HK) in the open market, as reported by Ifeng Finance.
  • This equates to 6% of China Evergrande’s capital.
  • The total price was HK$11.1 billion.

Why It Matters:

  • China Evergrande is a leading Chinese real estate developer. The company posted a net profit of RMB 23.13 billion for the first half of 2017, up 224.4% compared with the same period of 2016; revenue for the same period was RMB 187.98 billion, up 114.8% on the same comparison basis.
  • Chinese Estates Holdings is a Hong Kong-based investment holding company principally engaged in property businesses. The company said that it holds a positive view towards China Evergrande’s growth.