Business Maverick: Chinese property tycoon to sell stake as share sales ramp up

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The billionaire owner of Country Garden Holdings Co is selling a stake in a unit to raise about $650-million amid a flurry of share sales by cash-strapped Chinese developers.

Yang Huiyan agreed to sell 237 million shares of Country Garden Services Holdings Co at HK$21.33, according to a statement to the Hong Kong stock exchange on Sunday. That represents a 10.9% discount to the latest closing price.

Country Garden has tapped the Hong Kong equity market twice in the past month, raising more than $1-billion to shore up finances that have been hurt by an unprecedented housing slump. Chinese developer shares have soared in recent weeks as authoritiesa clampdown on leverage by encouraging fundraising through bond and stock sales as well as bank loans.

Seazen Group lost as much as 13%. The developer agreed to sell shares to raise HK$1.96-billion in a placement. The deal will provide funding to repay offshore debts and use as general working capital, it said in a stock exchange filing.

 

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Seems the Chinese economy is more bedraggled kitten than roaring tiger.

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