China Overseas Land and Investment announced a restructuring this week, moving to focus on top-tier cities as analysts increasingly fret about a property bubble on the mainland.
The company, one of the biggest state-owned property developers in China, announced after trading hours on Wednesday that it was selling some of its assets to a 38%-owned subsidiary, China Overseas Grand Oceans Group COGO.
The restructuring will allow the company to focus more on tier one and tier two cities, which have a better growth and return prospect. But it should also cut the company’s net gearing by 1%, according to a Bank of America Merrill Lynch’s analyst...
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