|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||46.95 - 46.95|
|52 Week Range||38.58 - 49.91|
|Beta (5Y Monthly)||0.75|
|PE Ratio (TTM)||7.18|
|Forward Dividend & Yield||1.90 (4.06%)|
|Ex-Dividend Date||Jun 17, 2021|
|1y Target Est||N/A|
The property management arm of mainland developer China Resources Land has launched an initial public offering in Hong Kong that could raise up to US$1.6 billion (HK$12.3 billion), the latest in a list of Chinese companies hoping to raise funds on the city's stock exchange.China Resources Mixc Lifestyle is offering 550 million shares at a maximum price of HK$22.30 each, the company said in a prospectus released early on Wednesday. There is an option to sell an additional 82.5 million shares to meet any excess demand.The local share offering is expected to close next Tuesday and start trading on December 9, according to its timetable. CCB International, China International Capital Corporation (CICC), Citi and Goldman Sachs are joint sponsors for the deal.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The company ranked fifth by revenue among property management companies in the mainland last year, and second in terms of revenue from shopping mall management services, according to Frost & Sullivan.Apartment blocks developed by China Resources Land. Photo: Getty Images/500px Asia alt=Apartment blocks developed by China Resources Land. Photo: Getty Images/500px AsiaChina Resources Mixc Lifestyle hopes to use the bulk of the proceeds for strategic investments and acquisitions to expand its property management and commercial business. A smaller portion of the funds raised will be used for investments in valued-added service providers, supply chain, information technology services and smart communities.As of the end of June, the company managed residential and commercial properties with a gross floor area of 106.6 million square metres and operated shopping malls with an area of 5.6 million sq m.Meanwhile JD Health, the health care arm of e-commerce giant JD.com, is looking to raise up to US$3.5 billion in an initial public offering, according to a terms sheet seen by the Post on Wednesday that confirmed earlier estimates.It is pricing 381.9 million shares in a range of HK$62.80 to HK$70.58 per share.JD Health secured six cornerstone investors for its IPO who agreed to subscribe for as much as US$1.35 billion of stock, according to the terms of the deal revealed in the document. They are Singapore sovereign wealth fund GIC Pte, Hillhouse Capital, BlackRock, Tiger Global, China Structural Reform Fund and Lake Bleu.The online and offline health care firm is seeking a valuation of US$29 billion as it goes public in Hong Kong, which would be a significant appreciation from the US$12 billion it was last valued at, in August, by investors.A listing on the main board is scheduled for December 8, the terms sheet confirmed.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of China Resources Land Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
(Bloomberg Opinion) -- As China’s economy picks up after the pandemic, the last thing you might expect is a renewed credit squeeze in the real estate industry. So the imposition of leverage thresholds for developers has come as a surprise, weighing on shares of highly indebted companies from China Evergrande Group to Greenland Holdings Corp. The concerns may be overstated.China's widely circulated though unofficial “three red lines” policy sets limits on bank borrowings: a 70% ceiling on developers' debt-to-asset ratio after excluding advance receipts; a 100% cap on the net debt-to-equity ratio; and a requirement that short-term borrowings don't exceed cash reserves, according to S&P Global Ratings. UBS Group AG lists nine publicly traded companies that would breach the three thresholds. The policy builds on tightened restrictions in the interbank bond market. Under guidelines issued in August, homebuilders can sell new bonds only to refinance existing debt. Funds raised can’t exceed 85% of companies' total outstanding debt, preventing them from rolling over all their liabilities.China's real estate prices have done well this year, helped by stimulus measures in response to the Covid outbreak. Prices rose 3.6% in tier-1 cities , 5.3% in tier-2 cities, and 4.4% in lower-tier cities in July from a year earlier, according to Moody’s Investors Service. Restricting the flow of credit to developers may help to curb a glut of housing supply, with the stock of unsold homes standing at 480 million square meters across 100 cities.While that's a challenge to companies such as Guangzhou-based Evergrande, which at one point was the world’s most indebted developer, the big companies have always found ways to raise funds. Evergrande, for example, is considering listing its property management arm in Hong Kong. Valuations for management businesses are higher than for homebuilders because of their sticky client base and steady cash flows. It’s not alone. In recent weeks, a wave of developers has jumped on the property management bandwagon including China Resources Land Ltd., Sunac China Holdings Ltd., KWG Group Holdings Ltd. and Jinke Properties Group. All filed prospectuses online in recent weeks, with state-owned China Resources planning to raise as much as $1 billion from an IPO of its property management arm, according to Julia Fioretti of Bloomberg News. That would make it one of the largest such flotations in the city.The overseas debt market also remains open. Shenzhen-based Kaisa Group Holdings Ltd., which gained notoriety in 2015 for being the first Chinese developer to default on a dollar bond, had $2.65 billion in subscriptions for a $400 million issue this month. Even onshore, there are options: Greentown China Holdings Ltd., for instance, is raising 950 million yuan ($139 million) selling bonds on the stock exchange, after garnering 15 billion yuan from the interbank market as recently as April.The bottom line is that the property industry is just too important for the government to squeeze funding to the point where defaults may occur. By some measures, housing and related sectors like home furnishings make up a quarter of GDP. Franco Leung, associate managing director at Moody’s, says the government will continue to fine-tune regulatory measures and control credit growth to avoid a run-up in prices. Restrictions on home purchases in cities such as Shenzhen have already had an effect. The current round of credit tightening is unlikely to be the end. With few investment outlets apart from the volatile stock market, real estate will always attract buyers, even if President Xi Jinping has admonished that homes are for living in and not speculation. Few things are safer than houses in China. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.