Hong Kong property firm Chinese Estates increases stake in China Evergrande
Analysts say the Hong Kong firm is looking to rebuild its portfolio after a series of asset sales last year
Hong Kong property firm Chinese Estates Holdings and its executive director Chan Hoi-wan have raised their stake in mainland Chinese property developer China Evergrande to 8 per cent in the past 12 months, spending a total of HK$18 billion (US$2.3 billion).
Chan, the wife of former Chinese Estates chairman Joseph Lau Luen-hung, personally held 196.5 million shares in China Evergrande as of Wednesday noon, the mainland Chinese firm said in a stock exchange filing on Wednesday.
Analysts said the buying represented an attempt by Chinese Estates to rebuild its portfolio after a sell-down last year.
“Chinese Estates holds a large amount of cash after it sold down its property portfolio last year when the controlling shareholder Joseph Lau’s health was deteriorating,” said Ricky Tam, chairman of the Hong Kong Institute of Investors.
“It is not easy to build up its property portfolio again as asset values and land prices are rising significantly. It needs to seek investment alternatives like buying property stocks,” he said.