Chris Cruse and Associates Real Estate Broker: Chinese Real Estate Billionaire Makes Big Bet
by Zoe Jackson Cruse and AssociatesChinese
Real Estate Billionaire Makes Big Bet On Bank Amid Worries About Financial
System
Amid worries in China about the
exposure of its financial industry and investors to bust trust products, one of
the country’s richest people is making a big bet on a bank.
Hong Kong-listed Evergrande Real Estate Group, whose
chairman Hui Ka Yan ranked No. 13 on the 2013 Forbes China Rich List with a
fortune worth $5.4 billion, said on Friday it has spent 3.3 billion yuan, or
$545 million, to buy a 4.5% stake in Beijing-based Huaxia Bank. Evergrande
bought the shares on the open market at the Shanghai Stock Exchange, where
Huaxia is listed, between Nov. 13 and Jan. 24, the real estate developer said
in a statement after the end of trade.
Evergrande believes
“cooperation between the company and Huaxia Bank will foster the relationship”
between the banking and real estate industries in China and “enhance both the
property development and banking businesses of each of the parties.”
Some contrarian
investment thinking and cozying up with a bank might not be a bad
thing for Evergrande, whose shares have lost a quarter of their value in the
past year. If the arrangement proves workable from regulatory and
business points of view, other big developers could seek similar “cooperation.”
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