Yuzhou Slims Down Under State-Mandated Credit Diet for Property Firms

The mid-sized developer’s shares are down more than 50% this year as Beijing restricts the sector’s ability to borrow Key Takeways: •      Yuzhou Group has breached one of China’s “three red lines” for real estate builders, which will limit its annual debt growth to 10% •      The borrowing constraint will make it more difficult for the company to refinance maturing debt and develop new projects By Warren Yang For smaller Chinese property developer Yuzhou Group Holdings Co. Ltd. (1628.HK), bulking up its business while trying to slim down debt seems…

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China Logistics Property Heading for Listed Company Exit Door?

Logistics warehouse operator’s chairman to sell most of his 28% stake to JD Logistics, paving the way for a possible buyout Key takeaways: JD Logistics has offered to buy an additional 26% of China Logistics Property’s shares for $515 million, raising its stake to 37% If that purchase is completed, JD Logistics could offer to buy out China Logistics’ remaining shares at a 9% premium to their pre-announcement price levels By Doug Young Logistics has become a hot topic in China these days, forming a crucial plank in the herculean…

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Conservative E-House Spruces Up With Modest Acquisition

Purchase of real estate data and services provider Tianji for $46 million is in line with approach that has kept company profitable through turbulent times Key Takeaways: E-House’s latest modest acquisition is in line with its longer-term conservative approach in China’s real estate services market That approach could protect the company from market volatility, but could also lead to its irrelevance as it gets overtaken by more aggressive peers By Doug Young China’s property market has boomed over the last two decades on the back of the country’s huge economic…

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