Chinese developer behind US$1 million nano flats comes under severe selling pressure as shares plunge 80pc in Hong Kong
- Jiayuan International Group, the builder behind the T Plus micro flat project in Tuen Mun, sinks 81 per cent, loses HK$26 billion in market value
- Sunshine 100 China Holdings sheds 65 per cent
Chinese property developers in Hong Kong came under severe selling pressure, with the shares of two builders sinking by as much as 80 per cent in late trading on Thursday afternoon.
Analysts said the stocks may have taken a hit because of banks selling shares used as collateral to borrow money and tightening liquidity conditions on the mainland.
Jiayuan International Group, which is behind the T Plus micro flat project in Tuen Mun, plunged 80.6 per cent to HK$2.52 at the close.
Over 357 million shares were traded on Thursday, 68 times the daily average over the past one year.
The mainland-based developer has been under pressure as sales of units at the project have not picked up owing to the downbeat market sentiment.
The project’s sales launch closed early on December 8 after only two of the 73 units on offer were sold, agents said. Some flats measure 131 square feet, smaller than a standard Hong Kong car-parking space, but are priced at HK$2.85 million (US$363,291).