Ricky Chim buys Shenyang shares on the cheap
Son of former lawmaker is buying into HK-listed mainland property developer at a big discount
A company owned by the son of former lawmaker Chim Pui-chung is buying into Shenyang Public Utility Holdings, a Hong Kong-listed company engaged in property development on the mainland.
The deal is part of a growing trend where Hong Kong companies invest in mainland firms, sometimes cash-strapped ones, as China's economy continues to weaken and banks remain reluctant to lend to smaller companies.
"If the price is right, it is a good opportunity for Hong Kong companies to gain exposure to mainland business and for the other party to raise funds," said Louis Tse Ming-kwong, a director of VC Brokerage.
Ricky Chim Kim-lun is the son of the man known as the "Angry Man from Chiu Chow", who represented the financial services industry in Legco.
Ricky Chim is using his British Virgin Islands incorporated company Sky Earth to buy all the H shares "other than those already owned or agreed to be acquired by the offeror and parties acting in concert with it" of Shengyang, according to a Hong Kong stock exchange filing.
Shengyang is listed in Hong Kong and its total H shares amount to 41.2 per cent of outstanding shares.