China State Construction International Holdings

China Overseas outlines spending

PUBLISHED : Saturday, 18 January, 1997, 12:00am
UPDATED : Saturday, 18 January, 1997, 12:00am

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.