It is reported that Yuexiu Property (00123) rose nearly 10% in midday trading, up 8.55% to HKD 6.22 with a turnover of HKD 188 million as of publication.

According to the announcement released by Yuexiu Capital, its subsidiary Guangzhou Asset intends to use no more than RMB 557 million to purchase Yuexiu Property's stocks through the secondary market within the authorized period of 12 months, and will hold no more than 2% of the total share capital of Yuexiu Property. It is known that Yuexiu Capital's controlling shareholder is also Yuexiu Group. Prior to the increase of shareholding, Yuexiu Group held 43.39% of the company's shares, and after the increase, its shareholding percentage will be increased to no more than 45.39%.

According to Shenwan Hongyuan's research report, the top two shareholders of Yuexiu Property are both state-owned enterprises, and the strategic investment of Guangzhou Metro has enabled the company to achieve new strategic development of "railway+property", with obvious resource endowment advantages. The recent intention of major shareholders to increase their shareholding by no more than 2% further indicates their firm bullishness on the company's intrinsic value. The bank pointed out that Guangzhou Asset has always focused on its core business of non-performing asset management, and actively participates in the distressed real estate market through cooperation with top-tier real estate enterprises. This investment in Yuexiu Property's equity will also help deepen the cooperation level and enhance strategic cooperation in the real estate industry.