Deals
State Firm Buys China South City Stake in Developer Bailout
- Shenzhen SEZ will be developer’s top shareholder after deal
- China South City’s dollar bond due 2023 poised for record gain
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A Chinese state-run enterprise will buy into struggling developer China South City Holdings Ltd., as Beijing moves to limit the fallout from a widening debt crisis engulfing the country’s real estate industry.
Shenzhen SEZ Construction and Development Group Co., a unit of the southern Chinese city’s local state asset regulator, has agreed to pay HK$1.91 billion ($245 million) for a 29% stake in the Hong Kong-listed developer, the latter said in a stock exchange filing Friday.