Closer Look: Developers Build Banking Ties with Stake Purchases
(Beijing) – A booming property market – some would say bubble – doesn't appear to be enough for some developers. Now they're branching out into banking.
Hong Kong-listed Evergrande Real Estate Group expanded into banking by acquiring a 4.5 percent stake in Beijing-based Huaxia Bank for 3.3 billion yuan last week.
A source close to the property developer said the purchase is a strategic investment. Huaxia has a strong balance sheet that can improve Evergrande's financials. It may help Evergrande finance at a lower cost, he said.
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