Shares of Hong Kong-listed property developer Neo-China Group (Holdings) rose 7.23 per cent yesterday after the company unveiled a 3.1 billion yuan acquisition in Zhuhai, Guangdong province.
The stock gained 17 HK cents to close at HK$2.52, extending its climb this year to 111.8 per cent. The benchmark Hang Seng Index has risen 41 per cent by comparison.
Neo-China said construction of the Zhuhai project would start early next year and the 2.22 million square metre residential and commercial complex would take five years to complete.
Fuelled by strong interest from out-of-town buyers including those from neighbouring Macau, home prices in Zhuhai had risen 22.75 per cent to an average of 6,104 yuan per square metre in the first six months, according to authorities at the Zhuhai Statistics Bureau.
By comparison, home prices in some nearby premium locations such as Gongbei near Macau had climbed well over 14,000 yuan per square metre during the period. In the first nine months of the year, 33 new projects with a total floor area of 1.2 million square metres came on to the Zhuhai market, a Centaline survey showed.
Moody's Investor Service yesterday affirmed its B1 corporate and senior unsecured ratings for Neo-China, saying the company's outlook remains stable.
