By Clarence Leong
Beijing Capital Land Ltd.’s shares jumped in morning trade after it said it would transfer Beijing property rights to a new joint venture for a cash consideration of 2.30 billion yuan (US$355.4 million).
The Chinese real-estate developer’s shares rose 60% to HK$1.74 by the midday break Friday, putting the company in positive territory for the year, and on track for the highest close since May 2020.
Beijing Capital Land said late Thursday that its subsidiary Shoujin Xinchuang had entered into a deal with another Chinese property developer, Jinyuan Hongda, to create a JV to develop residential and commercial properties and other facilities in Beijing’s Chaoyang district. Land use rights for the project’s various developments range from 40 years to 70 years.
Beijing Capital Land’s shares had suffered, as the Covid-19 pandemic cut into property development, falling particularly sharply in late March on news that 2020 net profit declined more than 50%. Property sales have moved higher in recent months amid the economic recovery in China, with Beijing Capital Land’s January-May contracted sales up 56% from a year earlier to almost CNY31 billion.
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View more information: https://www.marketwatch.com/story/beijing-capital-land-shares-jump-on-jv-deal-271624599827