China Is Minting New Real Estate Billionaires

Technology industry IPOs such as Meituan Dianping and Pinduoduo have accounted for a big source of the newly rich in recent years in China, home to the world’s second-largest group of billionaires after the United States. Yet real estate, a main source of wealth in China earlier days, is still generating new billionaires, too. A case in point: Friday’s listing in Hong Kong of Shanghai-headquartered Sinic Holdings Group formally turned chairman Zhang Yuanlin into a billionaire. Though its shares closed down 0.7% from their offering price at HK$3.95, or US$0.50, Zhang’s holdings were worth $1.4 billion at the end of trade. Sinic develops and markets high-rise residential buildings, low-rise apartments, villas, commercial facilities, office buildings, and other real estate. Sinic also provides property management services. Sinic raised about HK$2.1 billion in an IPO this month. Some 60% will be used for financing existing projects, 30% for repayment of a portion of project debt, and 10% for general business operations and working capital.