China Evergrande plans listing of properties
China Evergrande Group plans to inject almost all of its property assets into a Shenzhen company, orchestrating a backdoor listing in mainland China aimed at boosting its valuation and making it easier for the heavily indebted company to raise any funds. Evergrande will become the controlling shareholder of Shenzhen Special Economic Zone Real Estate & Properties (Shenzhen Real Estate) after the state-backed Shenzhen developer issues new shares and cash to an Evergrande subsidiary in exchange for China property assets. "We believe Evergrande and its property assets should be able to command a higher valuation in the A-share market amid mainland investors' focus on sales and brand name," Credit Suisse said in a note.
Tags : INTERNATIONAL