Sunac Shares Drop After Developer Signs Pact With Indebted Yurun
- Company will join Yurun in creditor talks on debt issues
- Yurun's property land bank mostly in lower-tier Chinese cities
Sunac China Holdings Ltd., the Chinese developer that dropped a takeover bid for Kaisa Group Holdings Ltd. earlier this year, headed for the biggest drop in two weeks in Hong Kong trading after announcing a strategic cooperation with an indebted Chinese foodmaker.
Sunac shares slid as much as 6.3 percent and fell 4.9 percent to HK$4.06 at the midday break on Wednesday, headed for the biggest drop since Aug. 26. The benchmark Hang Seng Index gained 3 percent. Sunac said Tuesday that it entered “a series of strategic partnerships” with Yurun Holdings Group Co., a meat producer with diversified businesses including real estate, without providing more details. Sunac will join Yurun’s discussions with creditors on its debt issues and will provide Yurun “with full support,” it said in the statement.