Chinese developer Shimao looks to sell $12 bn in assets: report
Chinese real estate firm Shimao
Group is looking to sell around $12 billion in assets, according to Chinese
news outlet Caixin, as the developer seeks to raise funds to combat its
liquidity problems.
China's property firms have
struggled in the wake of Beijing's drive in recent years to curb excessive debt
in the real estate sector as well as rampant consumer speculation, putting
massive pressure on the wider economy.
Among the most prominent developers
facing a liquidity crisis is Evergrande, which has been teetering on the brink
for months because of its trouble in servicing a debt pile topping $300
billion.
Developer Shimao Group is now
looking to offload 34 projects in 17 cities including Beijing, Shanghai and
Hangzhou, Caixin reported Tuesday.
The assets span residential, office,
commercial and hotel projects, the report said, citing documents.
Fifteen of the projects were valued
by Shimao at 42.2 billion yuan ($6.65 billion), while 19 others were either
partly-owned by the firm or in early stages, involving an investment of 32.5
billion yuan.
Shimao's shares soared more than
seven percent in Hong Kong on Tuesday.
The news comes after Evergrande's shares
rallied Monday in reaction to the appointment of a state firm official to its
board.
Embattled property firms including
Agile Group and Shimao Group have in recent days announced sales of stakes in
companies to state-owned enterprises.