Shenyang move lifts China Infrastructure

PUBLISHED : Saturday, 20 June, 2009, 12:00am
UPDATED : Saturday, 20 June, 2009, 12:00am

Shares in China Infrastructure Investment surged 18.02 per cent to 20.3 HK cents yesterday after the company agreed to increase the investment capital of a development project in Shenyang.

Its shares had earlier jumped as much as 31.98 per cent in the afternoon following a trading resumption.

China Infrastructure announced yesterday the investment company and Pan-China Construction had agreed to increase the registered capital for their joint-venture project in Shenyang by 433 per cent to US$79.89 million.

China Infrastructure will cover US$45.42 million or 70 per cent of the extra investment cost, as it owns a 70 per cent interest in the project. The remaining 30 per cent is held by Pan-China Construction.

China Infrastructure and Pan-China Construction have formed Pan-China (Shenyang) to hold the project.

The company posted a net loss of 8.9 million yuan (HK$10.09 million) in 2007 and 14.2 million yuan last year.

China Infrastructure said the increase in investment would strengthen its financial position and provide an opportunity to finance the second-phase development of the project.

The project in Hun Nan New District in Shenyang covers a 75,000 square metre site with a total floor area of 460,293 sqmetres.

It will comprise residential buildings, shopping centres, office buildings, serviced apartments and hotels.

The first phase of the shopping centre has been completed and is scheduled to open in December this year or before the Lunar New Year. Some retail space has been leased.

Shares of China Infrastructure had closed at 17.2 HK cents before being suspended from trading on Thursday.

Cash top-up

The firm has agreed to a rise in capital for a venture in Shenyang to, in US$: $79.9m