Tightening credit conditions on the mainland have prompted developers to dispose of assets, with China Aoyuan Property announcing the proposed sale of a 46 per cent stake in its property project in Panyu to a mainland life insurance company. The Guangdong-based developer said Huaxia Life Insurance, headquartered in Beijing, had agreed to buy the stake in Guangzhou Aoyu by way of capital injection for 1 billion yuan (HK$1.263 billion). Guangzhou Aoyu is a company that owns a project in Panyu with a usable area of about 64,860 square metres. China Aoyuan said the disposal would provide an additional source of capital for the company to facilitate further development and expansion. Upon completion, China Aoyuan will have its interest in Guangzhou Aoyu reduced from 100 per cent to 53.96 per cent. Guangzhou Aoyu’s net profit after tax last year was 40.81 million yuan, down from 214.85 million yuan in 2012.