Today’s day on the Hong Kong Stock Exchange turned out to be a rough day amid fears over profits and loans. The leader of the decline was the debt-ridden China Evergrande Group, led by billionaire Hui Ka Yin, whose shares fell 7% after a big loss in the electric car division. Among other billionaire-controlled developers, Sunac China lost 2.3%, Country Garden lost 1.1% and Guangzhou R&F lost 1.6%. Index of Hong Kong Hang Seng by the end of the day fell by 1.1% to 25,415.69 points.
In contrast, commercial developer Golden Eagle Retail Group, headquartered in Nanjing, showed calm during the storm, climbing 0.6% to close at HK $ 6.91.
The stock rallied after the company, led by billionaire chairman and CEO Roger Wang, said last night that first-half net income rose 111% to 887.6 million yuan as business rebounded from Covid-19 lows a year earlier. Revenue increased 20% to 3.0 billion yuan, boosted by a 13% increase in GDP over the period.
Wang, a US citizen residing in Nanjing, owns approximately 58% of Golden Eagle. The Chinese native grew up in Taiwan and left for the United States in 1970 to pursue an MBA before focusing his business in mainland China. Wang’s fortune is estimated at $ 3.7 billion, which is now listed on Forbes’ Real-Time Billionaire List.
Golden Eagle shares are traded at a multiple of 7.2; the dividend yield is 7.9%, according to an estimate published on the Hong Kong Stock Exchange website. Golden Eagle has 31 department stores and entertainment centers, mostly in eastern China. Travel restrictions were imposed in Nanjing in July due to Covid-19 but have since been eased.
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