2023.11.07
Yuexiu Property Company Limited (“Yuexiu Property”), a company listed on the main board of the Hong Kong Stock Exchange (HK.00123), recently completed a HK$ 8.36 billion rights issue. This was successfully filed with the China Securities Regulatory Commission (“CSRC”) for overseas offering and listing in October. This was the first rights issue by a HKEx-listed real estate company filed with the CSRC for overseas offering and listing after the Trial Measures for Administration of the Overseas Securities Offerings and Listings by Domestic Enterprises (the “New Filing Rules”) came into effect on March 31, 2023.
Established in 1983 and listed in Hong Kong in 1992, Yuexiu Property was one of the first integrated real estate enterprises in China and the first ever state-controlled red-chip real estate company. The company developed China’s first-generation commercial housing and the world’s first Hong Kong-listed real estate investment trust, Yuexiu REIT (00405.HK) which invests in mainland Chinese properties. It also controls one of China’s top 100 property management companies, Yuexiu Services (06626.HK) which provides large-scale TOD integrated property management services. Yuexiu Property is a leading property developer in the Greater Bay Area, ranking No. 1 in the Guangzhou property market. At the end of 2022, it had total assets of more than RMB 340 billion and a total land reserve of over 28 million square meters.
The rights issue occurred during a difficult time in the real estate sector. Yuexiu Property raised HK$ 8.36 billion through the rights issue, which will be invested in the Greater Bay Area, core cities in East China and other key provincial capitals to strengthen its diversified and characteristic “6+1” platform for increasing land reserves. The rights issue has a great significance for the future development of Yuexiu Property and the maintenance of its leading market position.
JunHe acted as the PRC legal counsel to CLSA B.V., Goldman Sachs, Morgan Stanley, DBS Asia and CICC who were all joint underwriters in the project. Thanks to the rigorous, high-quality and efficient legal services provided by the JunHe team, the project was successfully closed and filed with the CSRC.
The JunHe team was led by partner ZHANG, Ping and counsel CHEN, Yi (Joyce), with great support from partner HUANG, Wei for the internal review. Counsel Chen Yi and partner XIONG, Jingui（Alice） were responsible for the specific work.
