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The hot money from Europe and the United States has shown strong interests in Chinese-concept stocks. Barclays Capital, for example, bough in five Chinese-concept stocks last week, at an investment amount of HKD 3.12 billion. The British institutional investor bought in HKD 2.53 billion worth of H-shares of BYD Company Ltd. (1211.HK), translating to HKD 78.14 per share.
As experts said, the hot money from Europe and the United States was attracted by the outlook of economic turnaround in China's Mainland, and the expectation for Renminbi appreciation. Different from the hot money from Europe and the United States, the capital of China's Mainland is interested in the house market of Hong Kong. It is understood to be motivated by the lower loan rate and the brilliant prospect of the house market in the financial center.
Stimulated by this, Hang Seng Index on October 27 closed at 22,169.59 points, thus representing a growth of 1,214 points in the month. Some Chinese real estate companies meantime are ready to get listed in Hong Kong.
Reports said that Evergrande Real Estate Group expects to collect about USD 769 million or CNY 5.2 billion from selling 1.513 billion Hong Kong dollar-denominated shares, translating to HKD 3 to HKD 4 per share.
This time, the low IPO price and the large scale of Evergrande Real Estate have attracted many well-known investors, including Li Ka-shing, the wealthiest businessman in Hong Kong. According to reports, Li might have subscribed for over USD 100 million worth of H-shares of Evergrande. In addition, Joseph, LAU Luen-hung and Cheng Yu-tung each has subscribed for USD 50 million worth of H-shares of Evergrande. The former is the chairman of of Chinese Estates (Holdings) Ltd. (0127.HK) and the latter is the chairman of New World Development Ltd. (0017.HK).
Once getting listed, Evergrande is going to buy lands in economically developed Shanghai and Beijing. Currently, the developer runs business in south China mainly. In the first half of this year, Evergrande achieved sales revenues of CNY 12.7 billion, which represents the record good performance. In the whole year of 2009, the land company is expected to achieve sales revenues of CNY 30 billion in total and expand its land reserves up to 50 million square meters.
(USD 1 = CNY 6.82)
Source: www.cnstock.com (October 28, 2009)
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