China Builders Plunge in Hong Kong on Trust Financing Report
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Chinese developers plunged in Hong Kong trading after Reuters said the nation’s banking regulator told trust companies to report dealings with Greentown China Holdings Ltd., sparking concerns of a funding squeeze.
Greentown, the largest builder in the eastern province of Zhejiang, slumped 16 percent to HK$4.49 at the close of trading in Hong Kong, the most in almost three years. The developer said it hasn’t received the regulator’s notice. KWG Property Holding Ltd. tumbled 12 percent, while five of the 10 biggest decliners on the MSCI China Index were property companies.