Greentown rallies after reports of stake sale
Greentown ChinaHoldings Ltd, whose chairman ended a share sale to a rival developer, surged the most in two and a half years inHongKong onWednesday after it agreed to sell a 24 percent stake in the company to a State-owned construction group. The shares of Greentown, based inHangzhou in eastern China, rose 21 percent, the most since June 2012, to close at HK$7.65 (99 cents). They resumed trading onWednesday after the stock was suspended onMonday. The shares had dropped 10 percent on Friday, when Greentown said the plan to sell a same-sized stake to Sunac ChinaHoldings Ltd was terminated. Greentown, founded by chairman SongWeiping, will sell the shares instead to China Communications Construction Group, the parent of the nation’s biggest building firm, for HK$6 billion, or HK$11.46 per share, an 81 percent premium to the closing price on Friday. The construction firm will become one of the two largest shareholders and Song’s holding will drop to 10 percent from 22 percent.