Hong Kong approves spin-off of Chinese metals and plastics firm Karrie International’s property arm, paves way for listing

Name: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development
Uploaded: 2022-02-04T10:33:38.000Z
Duration: 1 min 29 s
Description: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

KRP Development is heading for a listing in Hong Kong after the city’s bourse approved its spin-off

The spin-off will also entail KRP’s acquisition of Kar Info International Property Limited and Dongguan City Jiaxuntong Computer Products Limited

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The Exchange Square complex, which houses the local bourse, in Hong Kong. Photo: Sam Tsang

Cheryl Arcibal

Published: 6:33pm, 4 Feb 2022

KRP Development, the real estate business of Chinese metal and plastics manufacturer Karrie International Holdings, is heading for a listing in Hong Kong after the city’s bourse approved the unit’s spin-off, the company said on Friday.

The Hong Kong exchange “has confirmed that the company may proceed with the proposed spin-off” of KRP, a filing with the bourse said.

The approval for KRP’s listing comes at a tough time for mainland Chinese property developers. Beijing has been cracking down on risky borrowings by these firms as it seeks to curb rising home prices in the country.

After China introduced the “three red lines” in August 2020, mainland developers have been scrambling to get their houses in order. Failure to meet these benchmarks cuts off access to new bank loans.

The spin-off will also entail KRP’s acquisition of Kar Info International Property Limited and Dongguan City Jiaxuntong Computer Products Limited. The spin-off will be carried out through the distribution of shares, or a dividend payable in shares.

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New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

With the spin-off, the “value of both the industrial and real estate businesses will be further realised upon completion, and it will create positive impacts to the long-term development of both businesses”, Karrie International said in an interim financial report filed with the Hong Kong exchange in November.