Hong Kong

New World China Land: Loan agreement (Co)

l           The Co announces that Superb Wealthy Group, the Co’s indirect wholly-owned subsidiary, obtained a term loan facility in the principal amt of HK$630m on 19 Dec 2012. The facility agreement contains provision which requires New World Dev to maintain a specified minimum shareholding in the Co.

Kerry Properties & SA formed JV (Co)

l           19 Dec 2012, KPCL (a subsidiary of KPL) & SACL (a subsidiary of SA) entered into the S&P Agreements pursuant to which KPCL shall acquire from SACL the Sale Interests, being 25% of the equity interest in each of the JVCOs, at an aggregate consideration of Rmb100,268,000 (c.HK$125,335,000).

HKMA warns of risk to economy from soaring property prices (SCMP)

l           The Hong Kong Monetary Authority has sounded another warning a/b the risk of runaway home prices to the economy, which also faces a poor short-term outlook b/c of weak foreign demand.

Jobless rate remains steady at 3.4% (The Standard)

l           Hong Kong's jobless rate stood at 3.4% in the Sept to Nov period, unchnged from Aug-Oct, w/ biz activities remaining buoyant in the run-up to Christmas & New Yr.

l           The jobless rate rose in financing & insurance, & import & export trade sectors while improving in wholesale & retail sectors.

Flat prices red-hot despite curbs (The Standard)

l           Home prices continue to soar despite the recent cooling measures, w/ a new project in Sai Wan asking for around HK$30,000/sqf, & the govt saying it does not rule out stepping up curbs.

l           Sun Hung Kai Properties (0016) will launch 3 resi projects in the nxt 2 mths - Imperial Kennedy in Sai Wan, Residence 88 in Yuen Long & the 782-unit The Wings II in Tseung Kwan O.

Mainland buyers bailing out (The Standard)

l           The #of mainlanders purchasing Hong Kong flats plunged by >90% w/in a mth of the Buyer's Stamp Duty being implemented - although they still a/c for the majority of BSD transactions.

l           In the primary resi mkt, the proportion of mainland buyers dropped from a/b 30% to 4%, & in the 2ndary mkt, from a/b 20% to virtually zero (0.2%).