IPO: Fujian-based real estate developer Powerlong Real Estate (1238 HK) has decided to lower its initial offering price to between HK$2.75 and HK$3.00, from an original HK$3.30 to HK$4.90 in response to the current market situation, sources said. The debut will be delayed for several days and its IPO size has been reduced to HK$2.75 billion.
Properties: Chinese property developer Glorious Property Holdings (845 HK) fell 14.55 per cent in its Hong Kong debut on Friday. The stock rose to HK$3.92 at the highest and dropped to HK$3.76 at the close. Loss per share was HK$ 640 per board lot, excluding handling fee. The developer said the drop is merely an uncontrollable fluctuation in the capital market. Soho China (410 HK) announced that it has achieved contract sales of about 7.986 billion yuan for the nine months ended September 30, due to the improving real estate market in the mainland this year. The amount in the first three quarters has surpassed the contract sales achieved for the whole year 2008. Willie International (273 HK) has agreed to sell 750 million shares of Cordoba Homes Limited, its wholly subsidiary, to Ms Lo Ki Yan Karen for HK$450 million. After the deal, Willie International and Ms Lo will hold 60 per cent and 40 per cent of shares of Cordoba Homes respectively. Cordoba Group’s assets include residential and commercial properties in Hong Kong and a twenty-storey commercial building in the mainland. Guangzhou R&F Properties (2777 HK) has gained approval from mainland regulatory to issue 5.5 billion yuan worth bonds. Roadshows will begin after the golden week holiday. MTR Corp’s (66 HK) project in Yuen Long was suggested by the government to lower the density after the release of an airflow evaluation report by Hong Kong University of Science and Technology, saying that the project would block 50 per cent of wind blowing to Yuen Long centre. The government urged MTR Corp to lower the property height to no more than thirty floors and to reduce to four blocks from the planned nine blocks.
Financials: Hang Seng Bank (11 HK) has imposed a HK$50 levy on holders of new bank accounts that are closed in less than three months. HSBC (5 HK) said it will charge a penalty of HK$400 for delays in mortgage repayments from November. The lender will also increase the fee for online transfers to another bank from HK$10 to HK$30 from December. HSBC Holdings Plc has signed an agreement with Israeli businessman Nochi Dankner’sKoor Industries Ltd and Property & Building Corp to sell its New York City headquarters to the latter for US$300 million (HK$2.5 billion) in cash, according to Bloomberg. Standard Chartered’s (2888 HK) acquisition deal of Royal Bank of Scotland Group PLC’s India, Malaysia and China assets might break down as the lenders fail to make agreement on the takeover prices, according to Wall Street Journal.
Pacific Basin Shipping (2343 HK), a dry bulk shipping company in the towage and Roll-on Roll-off (RoRo) shipping sectors, announced the delivery into its ownership of “Humber Viking” – the Company’s first RoRo vessel. The company said it aims at diversifying its business to Roll-on Roll-off shipping.
Price of the newly listed China South City Holdings (1668 HK) fluctuates and market suspects the offering price is too high. The developer said it is not worried as it did not count the value of two projects in Nanning and Nanchang when it listed. The two projects are worth HK$17 billion and are the ‘gifts’ to the investors, said chairman Cheng Chung-hing.
TCL Communication (2618 HK) said it plans to increase the proportion of its domestic sales in its revenue from 20 per cent to 30 per cent as the mobile phone market rallies on 3G fever. The company also expects to return to the black in the second half.
GCL-Poly Energy (3800 HK), the mainland’s largest producer of polysilicon, and its subsidiary will expand its long-term supply agreement signed with Trina Solar. The producer will provide extra polysilicon and silicon chips to Trina Solar for five years from 2016 while the prices will be set to link with current market prices of polysilicon and silicon chips.
Sources: Sing Tao Finance, Hong Kong Economic Journal, Hong Kong Economic Times, The Standard