Property Developer Sunac Slumps as $2.2 Billion Bet on China's LeEco Questioned

  • Deal to increase developer’s debt, lacks synergies: analysts
  • Sunac to seek growth through health, finance, resources deals

China's LeEco Gets $2.2B Sunac Investment

Lock
This article is for subscribers only.

Sunac China Holdings Ltd. fell the most in more than 16 months in Hong Kong as investors questioned the real estate developer’s $2.2 billion bet on Chinese tech tycoon Jia Yueting’s cash-strapped LeEco empire.

The stock slumped as much as 10 percent, the biggest intraday decline since Aug. 26, 2015, and traded 6.2 percent lower at HK$6.84 as of 1:37 p.m. local time, paring this year’s gain to 6 percent.