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Greentown turns blue with price dive
By Cao Qian |
September 23, 2011, Friday
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Print Edition
Print Edition
GREENTOWN China Holdings Ltd, a high-end real estate developer, fell the most in almost three years in Hong Kong trading yesterday despite the company denying an earlier media report which said it is being investigated by the banking regulator.
The Hangzhou-based company closed 16.2 percent lower at HK$4.49 (58 US cents) following a Reuters report on Wednesday that the China Banking Regulatory Commission has ordered trust firms to report to it their exposure to the parent and units of Greentown China and assess their own risks associated with the developer and its units.
"We have not received any official notice regarding the alleged investigation and request from the CBRC. The alleged investigation is not against Greentown," the developer said in a statement submitted to the Hong Kong stock exchange yesterday.
The report also caused other major Chinese developers to plunge yesterday in Hong Kong on fears of a likely funding squeeze.
Evergrande Real Estate Group Ltd, one of the country's largest developers, plunged 10.9 percent to HK$3.18 while Country Garden Holdings Co tumbled 11.6 percent to end at HK$2.21.
Sky Xue, an analyst at China Real Estate Information Corp, said Greentown, like most of its industry counterparts, "faces a shortage of money" as a result of sluggish buying sentiment over the past months.
"Compared with others, Greentown is one of the most seriously affected developers by the country's latest austerity measures since January due to its focus on the high-end sector where demand has plunged on home-purchase restrictions."
The Hangzhou-based company closed 16.2 percent lower at HK$4.49 (58 US cents) following a Reuters report on Wednesday that the China Banking Regulatory Commission has ordered trust firms to report to it their exposure to the parent and units of Greentown China and assess their own risks associated with the developer and its units.
"We have not received any official notice regarding the alleged investigation and request from the CBRC. The alleged investigation is not against Greentown," the developer said in a statement submitted to the Hong Kong stock exchange yesterday.
The report also caused other major Chinese developers to plunge yesterday in Hong Kong on fears of a likely funding squeeze.
Evergrande Real Estate Group Ltd, one of the country's largest developers, plunged 10.9 percent to HK$3.18 while Country Garden Holdings Co tumbled 11.6 percent to end at HK$2.21.
Sky Xue, an analyst at China Real Estate Information Corp, said Greentown, like most of its industry counterparts, "faces a shortage of money" as a result of sluggish buying sentiment over the past months.
"Compared with others, Greentown is one of the most seriously affected developers by the country's latest austerity measures since January due to its focus on the high-end sector where demand has plunged on home-purchase restrictions."
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