New World’s Cheng Family Weighs Capital Injection by Year End

New World Development Co.’s controlling shareholder, the billionaire Cheng family, is considering injecting capital into the debt-laden builder as early as the end of the year, according to people familiar with the matter.

The family of Hong Kong tycoon Henry Cheng is willing to contribute about HK$10 billion ($1.3 billion) and is seeking a partner that can provide a roughly similar amount for an equity stake, said the people, who asked not to be identified discussing private matters. The plan under discussion would establish a joint venture to provide liquidity to New World, the people said. The talks are ongoing and details about the deal’s size and structure could change.