Center

Firm raises US$123m in share sale

By Hanny Wan and Cathy Chan (China Daily)
Updated: 2006-10-27 10:48

The company on Wednesday sold 343.2 million shares at HK$2.80 each, a discount of 13.3 per cent to Wednesday's closing price of HK$3.23, according to an e-mailed copy of the document. The share sale was arranged by CLSA Ltd. Beijing Capital Land issued 312 million new shares for the sale, according to the document. China's pension fund sold 31 million shares, Taylor said.

The company's shares have jumped 42 per cent so far this year, outperforming the 22 per cent gain in the benchmark Hang Seng Index. The stock closed 1.3 per cent higher at HK$3.23 on Wednesday before trading was halted yesterday.

China has imposed new taxes, tightened lending and restricted foreign investment this year after property prices jumped more than 10 per cent in cities such as Beijing.

The government is concerned surging prices may lead to a collapse that could cause an abrupt slowdown in the world's fastest-growing major economy.

Property prices in China have more than doubled since 2000. In the country's 70 major cities, property prices rose 5.5 per cent in the third quarter year-on-year, according to the commission, China's top economic planning agency.