Parkview Group surges 45pc on new asset hopes
Share prices of Hong Kong-listed developers partly owned by mainland firms soared yesterday.
The Hong Kong Parkview Group shot up 45.27 per cent to HK$5.07 as the Hang Seng Index rose 0.5 per cent to close at 21,012.38 points, a five-month high.
In July, Cofco (HK), a wholly owned subsidiary of the mainland food giant Cofco Corp, proposed buying 393.67 million shares, or 73.5 per cent of the share capital of Parkview, at 92 HK cents.
Some analysts said the surge in the share price was due to speculation Cofco would inject property assets into Parkview.
The shares of another Hong Kong-listed development company, Winsor Properties, of which 74 per cent was sold to the mainland's largest listed developer, China Vanke, for HK$1.08 billion in July, also leapt yesterday. They rose 19.58 per cent to HK$13.80.
"Influenced by the rise in share prices of mainland property developers recently, investors are speculating on shares of listed developers backed by mainland companies, so their prices have gone up," Ricky Tam Siu-hing, a director at Champlus Asset Management, said. "The market is fuelled with abundant liquidity, and some capital has flowed to smaller mainland-related developers recently."
Castor Pang Wai-sun, head of research at Core-Pacific Yamaichi, said only a small portion of Parkview's shares were held by the public, which made the share price liable to big swings.
Last month, the Securities and Futures Commission said that as at September 17, only 2.63 per cent of the issued shares of Hong Kong Parkview Group were held by public shareholders, while the rest were held by three substantial shareholders and six other shareholders.
The company said it did not know the identity of the six shareholders, and that not less than 25 per cent of the issued shares were in public hands at that time.
Mainland property firms have been keen on locally listed developers recently.
The controlling shareholder of Frasers Property (China) agreed to sell 56.05 per cent of the firm's issued share capital to mainland developer Gemdale Corp in a deal worth HK$1.65 billion last month. Shares of Frasers Property rose 3.45 per cent to 45 HK cents yesterday.