Related News
Gome's property plan spooks investors
By Lu Nengneng |
September 29, 2011, Thursday
|
Print Edition
Print Edition
SHARES of Hong Kong-listed Gome Electrical Appliances Holding Ltd plummeted more than 10 percent yesterday after it unveiled a plan for a property venture with its controlling shareholder.
China's second-largest electronics retailer tumbled as much as 11.4 percent to HK$2.34 (30 US cents), while the Hang Seng Index shed only 0.7 percent to 18,011.06 points yesterday.
The shares opened at HK$2.58 yesterday, 2.3 percent lower than HK$2.64 they closed at on Tuesday, and extended their loss while turnover surged to 289.5 million from 163.5 million the day before yesterday.
The Beijing-based retailer announced to the Hong Kong stock exchange on Tuesday that it will diversify into the real estate market by setting up a property venture with units associated with its founder Huang Guangyu.
But analysts said the share plunge indicated investor worries that the retailer is deviating from its core business.
Under the plan, Gome seeks to tap property development and investment to ''increase its portfolio of stores operating from self-owned properties, thereby lowering operating costs and increasing the margin of the group,'' it said in the statement.
The venture, with a registered capital of 200 million yuan (US$31 million), will be 45 percent owned by Gome's wholly-owned subsidiary Pengze. Huang's two units, Beijing Eagle and Beijing Gome, will hold 30 percent and 25 percent respectively.
China's second-largest electronics retailer tumbled as much as 11.4 percent to HK$2.34 (30 US cents), while the Hang Seng Index shed only 0.7 percent to 18,011.06 points yesterday.
The shares opened at HK$2.58 yesterday, 2.3 percent lower than HK$2.64 they closed at on Tuesday, and extended their loss while turnover surged to 289.5 million from 163.5 million the day before yesterday.
The Beijing-based retailer announced to the Hong Kong stock exchange on Tuesday that it will diversify into the real estate market by setting up a property venture with units associated with its founder Huang Guangyu.
But analysts said the share plunge indicated investor worries that the retailer is deviating from its core business.
Under the plan, Gome seeks to tap property development and investment to ''increase its portfolio of stores operating from self-owned properties, thereby lowering operating costs and increasing the margin of the group,'' it said in the statement.
The venture, with a registered capital of 200 million yuan (US$31 million), will be 45 percent owned by Gome's wholly-owned subsidiary Pengze. Huang's two units, Beijing Eagle and Beijing Gome, will hold 30 percent and 25 percent respectively.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
