Glonghui November 7 | Country Garden Services and Hefu Huihuang announced the signing of a strategic cooperation agreement. Country Garden Services will acquire about 71.64 million shares from Fu Weicong, the controlling shareholder of Hefu Huihuang, while subscribing to 26.966 million new shares. The shareholding volume is expected to increase by 13.1% to 38.1%. UBS said it has a negative view of the deal, mainly because Hefu Huihuang mainly engages in second-hand housing agency business, so it is expected that there will be limited synergy between the two sides. At the same time, considering that Hefu Huihuang is the main high-end real estate agent in the Guangzhou market, and that there is not much overlap with Country Garden and Bifu's business, UBS believes that if Bifu carries out share repurchases or dividends, it can bring shareholders more favorable returns than the acquisition of the real estate agency business, maintain a “neutral” rating for Country Garden services, and maintain a “neutral” rating for Country Garden services, with a target price of HK$7.9.