Cofco asset boost for Hong Kong unit seen moving slowly

Cofco, the mainland's largest food trader and processor, expects the injection of assets from its property companies into Hong Kong Parkview will take time due to strict scrutiny by mainland and Hong Kong regulators.

China National Cereals, Oils and Foodstuffs Corp (Cofco) will inject mainland commercial, office, and hotel properties into the Hong Kong-listed company it acquired this summer, according to Cofco chairman Ning Gaoning.

The injection, including assets of Joy City, a popular dining, shopping, and entertainment complex, will be made gradually, Ning said on the sidelines of the Communist Party's 18th national congress on Tuesday night.

In July, Cofco (HK), a wholly owned subsidiary of the mainland food giant, announced it would acquire a 73.5 per cent stake in Parkview, in a bid to turn it into a listing vehicle for Cofco's property businesses.

"The property businesses bring about stable earnings," said Ning. "We hope the transfer will be completed as soon as possible, but the approval procedure could be slow because we have to go through strict scrutiny by mainland and Hong Kong regulators."

Cofco's 10 Joy City outlets in Beijing, Shanghai, and other major cities have a combined floor area of about 4.68 million square metres, and the chain is estimated to be worth at least 20 billion yuan (HK$24.7 billion).