China developer Country Garden to spin off its property management business in Shanghai

CG Property Services received approval from regulators on Wednesday for the initial public offering and listing on the Shanghai Stock Exchange of its ordinary shares denominated in yuan , Country Garden said in a filing with the Hong Kong stock exchange.

“The proposed spin-off will further strengthen the corporate governance structure of CG Property Services and enhance the liquidity of its equity interest, thus facilitating the introduction of strategic investors, promotion of corporate image and realisation of sustainable development,” said executive director Wu Jianbin.

“The board believes that a separate listing of CG Property Services will provide diversified funding

sources for it to finance existing operations and future expansions,” the filing said.

It is expected that CG Property Services will make an offering of up to 40.1 million shares for subscription on the Shanghai exchange, representing approximately 10 per cent of its enlarged issued share capital.