Developer Jiayuan surges after chairman’s collateral clarification, ends day 6.22 per cent higher
- About 35.7 per cent has been pledged for US$120 million, stock filing shows
Mainland China-based small apartment developer Jiayuan International Group surged by 21.9 per cent in a few minutes after it resumed trading on Wednesday afternoon in Hong Kong, following a stock filing that clarified how much of its stock had been pledged as collateral for loans by its chairman.
The stock closed 6.22 per cent higher at HK$3.9 on Wednesday. In the filing, Jiayuan said Chairman Shum Tin Ching had reported that he and an entity registered in the British Virgin Islands he controls together hold 52.86 per cent of the company’s issued share capital.
Also, about 35.73 per cent of its issued share capital has been subject to share charges, or margin financing, while the remaining 17.13 per cent is not subject to any share charge or margin financing.
As for the pledged part (35.73 per cent), it has been used in exchange for US$120 million, with China Construction Bank International Overseas Limited, China International Capital Corporation Hong Kong Securities Limited and Sun Hung Kai Investment Limited as lenders.
