China Overseas outlines spending
LANA WONG and CHEUNG LAI-KUEN
China Overseas Land & Investment, the Hong Kong-listed arm of China's largest construction company, is to invest about 80 per cent of $1.52 billion raised from a recent cash call in housing and infrastructure projects.
The company said in a statement to Hong Kong stock exchange that it would invest $400 million in low-cost housing and $800 million in infrastructure.
No agreements regarding the projects were yet signed, it said.
The company stock remained unchanged at $4.05 yesterday on heavy trading with 450 million shares change hands.
The company cashed in on the 155 per cent jump in its share price in 12 months, raising $1.52 billion by placing 394 million shares to investors and a subscription by parent China State Construction Engineering Corp for the same number of shares at $3.875 each.
Chairman Sun Wenjie said the company would develop a balanced portfolio with 30 per cent of operating profit coming from infrastructure developments, 35 per cent from sales of properties, and 25 per cent from the construction sector by 2000.