BEIJING, June 11 (Xinhua) -- More real estate firms from the Chinese mainland are planning to list their property management businesses in Hong Kong this year to ease financial strains, according to Securities Daily.
Since the start of this year, three property management enterprises have been successfully listed on the Hong Kong stock exchange, raising 2.5 billion Hong Kong dollars (about 322.6 million U.S. dollars) in total, the newspaper reported.
Eighteen more real estate companies from the mainland have plans to split their property management businesses and have them listed in Hong Kong.
The property management sector has come under the spotlight thanks to its steady cash flow and asset-light and counter-cyclical advantages as pressure facing real estate firms keeps mounting, according to Huang Yu, vice-dean of Beijing-based property research institute China Index Academy.
The whole sector's market value has surpassed 300 billion Hong Kong dollars, the newspaper said, citing data from the academy.
The restructuring of real estate developers aims to relieve financial strains while expanding business through capital market financing, said Song Yanqing, president of Lander Consulting, a real estate consulting firm. Enditem