Property companies from Mainland China are easing back their presence in Hong Kong in an attempt to deal with a debt crisis that has upended a sector at the heart of the world’s second-largest economy, reports the Financial Times. Cash-strapped property company Kaisa, the Chinese sector’s second-biggest offshore bond issuer after heavily-indebted Evergrande, sold an entire floor at The Centre, a prime office tower in Hong Kong’s central district in December.
Property agents said China Aoyuan, a developer based in the southern Chinese city of Guangzhou, has tried to sell a 117,000 sq ft office building in Hong Kong’s Kowloon district that it had been hoping to redevelop.
Land sales, which account for a large proportion of Hong Kong’s tax receipts, have also been affected. None of the tendered sites in the government’s land sale program this year and last year were awarded to mainland developers. In 2020, at least eight of the 15 tendered sites were awarded to mainland-linked companies.
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