Sunday, June 4, 2023
Martin Hennecke

Shares of Jiayuan boss sold after margin call
<p>Chinese developer Jiayuan International (2768) said 1.35 million shares held by Mingyuan Group Investment, one of its controlling shareholders, were sold in the open market by a securities company through a margin securities account.</p><p>Mingyuan is controlled by Jiayuan chairman Shum Tin-ching, and the forced sale was due to a plunge in the value of the account&#39;s securities and failure in meeting the margin call, it said in a filing. Shum now holds 74.69 percent of the shares in the company.</p><p>The company&#39;s business operation remains normal and will continue to operate its business in its ordinary and usual course, it said.</p><p>Trading in its shares has been halted since last Wednesday after plunging 41 percent. The company said the trading will continue to be halted pending the release of an announcement in relation to a potential disposal of a subsidiary by the company.</p><p>Jiayuan&#39;s property management unit Jiayuan Services&#39; (1153) shares were also suspended from trading last Wednesday after a 70.6 percent decline.</p><p>Jinke Smart Services (9666), which halted its trading yesterday, has reportedly signed an agreement to acquire stakes in Jiayuan Services.</p><p>This came as several units of China Evergrande (3333) were ordered by a court in Chengdu to enforce a 4.18 billion yuan (HK$4.93 billion) payment obligation related to a lawsuit, according to mainland media reports.</p><p>This would bring the total amount of court enforcement actions issued to the debt-ridden developer to more than 18 billion yuan.</p><p>Meanwhile, the developer plans to defer the coupon payment of a bond by six months.</p>

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