- Sunac China Holdings (1918.HK) has announced it will invest RMB 2.6 billion in Lianjia Real Estate Co., reports Sina.
- Sunac China Holdings will take a 6.25% stake in the company.
Why It Matters:
- Lianjia Real Estate Co. is one of the largest real estate brokers in China. The company has 8,000 offices in 28 cities, including Beijing, Shanghai, Shenzhen, and Dalian, and employs more than 130,000 real estate brokers. Sunac China Holdings hopes to profit from transactions in China’s market for second-owned houses.
- Sunac China Holdings is a Shenzhen-based Chinese real estate developer. The company is in the second tier in terms of property sales, and it has failed several times when attempting to expand into first tier cities. The investment could be regarded as a hedge for Sunac China Holdings against the slowing Chinese housing market, which is expected to hit new housing sales the most.