(Yicai Global) March 20 -- Chinese real estate giant Country Garden Holdings Co., which is vice-chaired by China's richest woman Yang Huiyan, hopes to spin off its property management unit in Hong Kong after scrapping plans late last year for an initial public offering in Shanghai.
The Guangdong-based firm will list Country Garden Property Service Co. in the special administrative region to raise funds for existing operations and future development without relying on the parent company, helping it to expand faster while improving financial performance, it said in a statement.
Hong Kong-listed Country Garden originally applied to float the unit on the Shanghai Stock Exchange, but ditched the idea in December after the mainland regulator tightened listing requirements, particularly for spun-off divisions. The decision coincided with Guangzhou R&F Properties Co., another Hong Kong-listed real estate firm, withdrawing from a planned offering on the mainland.
Country Garden's property management business makes up a small portion of its overall revenue. It brought in CNY1.2 billion (USD190 million) in the first half of last year, compared with a companywide CNY77.7 billion.