Sunac China Holdings Ltd. (01918) saw its stock price plummet by 5.17% in Tuesday's trading session, following news of a significant share deposit by a major shareholder. This movement comes amidst ongoing restructuring efforts by the property developer.
According to recent Hong Kong Stock Exchange filings, a Sunac shareholder deposited shares valued at HK$1.305 billion into CCB Asia on July 14. This deposit represents a 6.58% stake in the company. The transaction is linked to Sunac's July 4 announcement of a strategic financing arrangement, which involves the issuance of new shares to a special purpose vehicle (SPV) as part of a debt resolution mechanism.
While Sunac has stated that this share issuance won't generate direct cash inflows, it is designed to eliminate RMB 5.6 billion in liabilities. The company aims to ease liquidity constraints, strengthen its financial position, and create sustainable conditions for long-term operational recovery through this structured arrangement. However, the market's negative reaction suggests investors may be concerned about potential dilution or the overall financial health of the company despite these efforts to stabilize its balance sheet.