Guangzhou R&F, a China real estate developer whose shares have been battered amid a cascading crisis at debt-strapped China Evergrande Group, has received a HK$8 billion, or $1.03 billion, financing pledge from its two main shareholders – Co-Chairman Li Sze Lim and Co-Chairman CEO Zhang Li, the company said in a Hong Kong Stock Exchange filing this evening.
Guangzhou R&F, whose credit rating was lowered to B2 by Moody’s earlier this month, dropped 7.3% to HK$4.29 today, and has lost nearly 60% of its value since May. Its shares plunged today as Hong Kong’s benchmark stock index fell 3.3% to close at a near one-year low of 24,099.14 as contagion spread from the collapse of shares at real estate developer China Evergrande Group, the world’s most indebted developer, to other property companies and banks.
Li, 64, is worth $2 billion on the Forbes Real-Time Billionaires List today; Zhang, 68, is worth $2.6 billion.
Click here for Guangzhou R&F’s full statement. Besides China, it has projects in the UK, Malaysia, Cambodia and Australia. Hotel partners include Intercontinental, Hyatt and Marriott.
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