Property stocks in Hong Kong plunged yesterday, as investors took profits following Shimao Property Holdings' share placement and a looming price war in Hong Kong.
Shares of Shimao tumbled 12.73 per cent to close at HK$6.72 after the developer raised a net HK$1.93 billion from the placement by setting the price at HK$6.95 a share.
Guangzhou R&F Properties dropped 6.66 per cent to HK$10.38 and Country Garden Holdings declined 5.02 per cent to HK$2.27.
Despite disclosing a 43.1 per cent increase in property sales in March to HK$6.06 billion yesterday, China Overseas Land & Investment dropped 4.01 per cent to HK$12.46.
Cheung Kong (Holdings) dipped 5.45 per cent to HK$71.95 after it released phase two of the Central Park Towers development in Tin Shui Wai at more than 10 per cent below secondary market prices.
The discount lured potential buyers away from New World Development's Emerald Green in Yuen Long, which sold only five units yesterday after selling 150 units on Tuesday. New World slipped 4.22 per cent to HK$8.85.
'Property stocks have surged 40 per cent to 50 per cent since early March. It's not surprising to see investors take profit,' said Li Kwok-suen, a fund manager at Phillip Capital Management, adding that the correction would last for days.