According to Bloomberg, the Zheng family of Shanghai New World is selling a batch of highway projects valued at approximately 2 billion USD to the state-owned Yuexiu Group, with discussions currently in the initial stages.

Insiders indicate that CHOW TAI FOOK is also in discussions with other buyers regarding the transaction and has informed them that these road assets can be sold in smaller portions.

Reports suggest that the potential sale mentioned above is part of CHOW TAI FOOK's strategic review of its toll road assets, aimed at raising funds, unlocking value for investors, and focusing on developing businesses with higher growth potential.

CHOW TAI FOOK is one of the three flagship listed companies of CHOW TAI FOOK Enterprises, which has been accelerating the sale of non-core assets in recent years to allocate more resources to growth sectors such as Insurance and Logistics. CHOW TAI FOOK also serves as a cash cow for the group, providing ballast when its sister company, Shanghai New World, faces losses and increasing debts. Another entity within the group, blue-chip CHOW TAI FOOK Jewelry, faces pressure from a slowdown in luxury goods consumption in mainland China and high gold prices, making it the highest Market Cap among the three companies.

CHOW TAI FOOK has risen approximately 46% over the year, while Shanghai New World has fallen about 58%, and CHOW TAI FOOK Jewelry has also seen a decrease of about 42%. To boost liquidity and market confidence, this year NEW WORLD DEV will sell its entire stake in Shanghai New World to CHOW TAI FOOK Enterprises.