Friday, August 12, 2016

roller coaster for chinese property company investors

Another surprise investor burst onto the scene this month. Evergrande, a rival developer run by billionaire Hui Ka Yan, said in regulatory filings that it had amassed a 5 percent stake as of Aug. 8. It cited Vanke’s “strong” financial performance for the purchases, without providing further detail on its motives.
Sell-side stock analysts have mostly stuck with their positive recommendations on Vanke as the drama played out. For both the mainland and Hong Kong shares, a majority of analysts tracked by Bloomberg have a rating equivalent to buy or hold.
It’s been a roller-coaster ride for investors. Vanke’s shares in Shenzhen plunged almost 30 percent in the four weeks through Aug. 1, playing catch up to Hong Kong as the six-month trading halt was lifted. The stock reversed its slump this month, surging 24 percent on news of Evergrande’s purchases.