Business

Shares of Jinmao Property Services Co.(00816), a Chinese property management company, plunged as much as 36% to HK$5.21 on its first trading day, as China's real estate markets remained under pressure. The company’s shares closed at HK$5.8 today, dropping 29% from its initial public price of HK$ 8.14. Jinmao Service was offering 101 million shares at a price ranging from HK$7.52 to HK$ 8.14, with a goal to raise up to HK$ 759.6 million. The share price was down as much as 6.1% to HK$7.6 in Gray Market trading on Wednesday, data compiled by Bloomberg Terminal shows. "The property services industry follows the trend of the housing market," said Steven Wong, the Portfolio Manager of Harris Fraser, "property services could be overvalued if property sales are weak." China's property market faces a great setback under Beijing's regulation as real estate companies have difficulties in paying debt, such as the default of property tycoon China Evergrande. Jinmao’s business scale is relatively small compared to other leading companies. Its managed area exceeds 23 million square metres in mainland China, including 20 provinces and 35 cities by September 2021, while Country Garden Services (06098) provides ten times more services, covering 644 million square metres by June 2021. Jinmao Property Services’ net profit increased from RMB 23 million yuan in 2019 to RMB 77 million yuan in 2020, while the net profit ratio was 8.2%, below that of Country Garden Services (06098), which is 17.2%. Meanwhile, the company's average management fee was RMB5.4 per square metres per month, higher than the average listing peer RMB3.8 yuan, according to a research report finished in 2022. Country Garden Services slipped 4.3% to HK$38.6 per share today. China Jinmao Holdings Group(00817), the parent company of Jinmao Property Services, which relies on real estate and hotel operations, recorded …

The share price of Café de Coral(00341), a Hong Kong fast-food chain, rebounded 2.17% compared to HK$ 11.98 yesterday as the company announced to stop dine-in services in most outlets. However, its shares still decreased nearly six percent in the past five trading days. Café de Coral and its congee restaurant Super Super Congee and Noodles suspended dine-in services and focused on takeaway from March 1, announced the Café de Coral Group on Feb 27. The Group would also adjust the business hours and modes of some casual dining branches. Leung Ke-ting, CEO of Café de Coral Group (Hong Kong), has publicly stated that the suspension on dine-in can reduce crowds in the store, protect the health of customers and employees, and reduce the pressure on employees to go to work. The group’s share fell as much as to HK$ 11.86 today, the lowest since the financial crisis in 2008. Restaurants in Hong Kong struggled to survive as the fifth wave of epidemic hit the city. It is estimated that there may be 5,000 restaurants that suspend business if the regulations are further tightened, said the Hong Kong Federation of Restaurant and Related Trades, reported by local media. LH Group Limited (01978) has suspended the operation of all its restaurants including Gyu-Kaku, Gyu-Kaku Jinan-Bou, On-Yasai, Mou Mou Club, etc. since yesterday. Its shares continued to drop today to HK$0.85, 1.16% lower than the previous close, after it plunged more than 11% to HK$0.82 yesterday morning. Tao Heung Holdings Limited (00573), a chain of Chinese restaurants, announced yesterday that it will be temporarily closed from today until the epidemic eases on Facebook. Its share price decreased 1.19% to a one-year low of HK$ 0.83 today. The government has expanded tightening social distancing rules to at least April 20. It ordered hair …

Hong Kong stocks slid as the US Department of Commerce added two subsidiaries of Wuxi Biologics’ to the red-flag list, with other 32 Chinese companies. Today’s main turnover was HK$129.5 billion. The Hang Seng Index closed at 24,329.49, down 1.02% following weakness from technology stocks. The city’s Tech index dropped 1.67%, closing at 5,436.92. Alibaba and Meituan fell 3.30% and 2.13% respectively. The stock price of Alibaba Health Information Technology tumbled 7.52%. Before its suspension started from 10:51 am, Wuxi Biologics plunged 22.77% to HK$ 62.3 after its inclusion to the “Unverifyed list” of US government, a list of business wordwide subjected to stricter export control as US officials cannot do routine check. The company’s stock sank as much as 32% in Hong Kong before the halt, dragging down the city’s benchmark and health-care stocks. WuXi Biologics’ associates, WuXi AppTec slumped 11.36% while JW (Cayman) Therapeutics fell 4.01%. Auto stocks also shrank. Great Wall was down 3.55% while BYD and Geely shrank 2.49% and 2.2% respectively. The state’s decision affected mainland stocks. Crypto stocks fell while semiconductor stocks followed. Insurance stocks demonstrated movements in opposite directions. The Shanghai Composite Index was up 0.67%, closing at 3,452.63, while the SZSE Composite Index inched down 0.24% to 2,280.51. The CSI Health Care Index, which tracks the performance of pharmaceutical companies listed in Shanghai and Shenzhen, decreased 1.32% to a 22-month low.

Hong Kong stocks continued to drop as technology stocks shrank and the market was concerned about upcoming tighter monetary policy in the U.S., in light of inflation. The Heng Seng Index closed at 24112.78, showing a 0.43% decrease. Though the market grew 0.69% to today’s peak, 24385.05, from its previous close in the morning trading session, the growth was erased by the drop at noon. The lowest of the day was 24009.71. The market was dragged down by losses in the technology sector. Tencent recorded a decreased 2.75% reduction to HK$HKD 452.8 from yesterday’s HK$HKD 465.6. This was followed by Meituan and Alibaba, declining 0.375% to HK$HKD 215.8 and 1.63%to HK$126.4 respectively. Several financial media reported that Morgan Stanley cut the target price of Tencent from HK$650 to HK$600 as the broker predicted that Tencent’s revenue will report a slower growth of 6% for the last quarter in 2021. This is due to delays in revenue recognition of new games. Regulatory policies regarding games and advertisements also came into play. Country garden from the property industry is the best performing blue chip of the day. It displayed a 4.94% growth, reaching HK$ 6.16. The company announced on Monday that it has repurchased US$ 10 million senior note (HK$ 389 million) from the market. HSCE fell 0.18%. The SSE Composite Index and CSI 300 Index inched up 0.80% and 0.97% respectively.