Authorities in the Qianhai economic zone in Shenzhen sold on Wednesday two commercial sites in the special zone for a combined 4.06 billion yuan (US$662.8 million), according to the Shenzhen Land and Real Estate Exchange Center.
Qianhai Shimao Investment (Shenzhen) Co. Ltd. bought the first site, tagged as T102-0244, for 2.43 billion yuan, slightly above the minimum auction price of 2.42 billion yuan. The site covers 12,746.7 square meters and offers gross floor area of 150,000 square meters. The average cost works out to 16,220 yuan per square meter of gross floor area.
The second site, T102-0245, went to Shenzhen Xiangjiang Supply Chain Management Co. Ltd. which paid 1.63 billion yuan, a 63.3 percent premium over the starting price of 998 million yuan. The property covers 4,223.5 square meters and offers gross floor area of 64,000 square meters. The price comes to about to 25,468.8 yuan per square meter of gross floor area.
Priority will be given to Hong Kong firms in the upcoming rounds of land auctions by Qianhai authorities, local officials said in early September after three commercial sites in the special zone were sold to three mainland Chinese firms.
However, Hong Kong-based property giants remain inactive in bidding for the Qianhai sites. Authorities may also be disappointed as one of the winners of the two sites in the latest auction is a supply chain management firm, instead of a property or financial company.
Hong Kong property firms are put off by a 10-year lock-up period and the prospect of slow returns, according to observers. If there is anything that leads to a suspension or slowdown of the construction of public facilities in the zone, the owners of the sites will suffer financial losses.
China Resources Land Ltd. (01109.HK) won a commercial site in Qianhai on Aug. 16 for 10.9 billion yuan while Excellence Real Estate Group, a Shenzhen-based commercial property developer, snapped up the first two commercial sites in Qianhai for a combined 12.37 billion yuan on July 26.
BoCom, Agricultural Bank said to plan RMB bond sale in Taiwan
Bank of Communications Co. Ltd. (03328.HK, 601328.CN) and Agricultural Bank of China (01288.HK, 601288.CN) have applied to Taiwan’s banking regulator for permission to issue yuan-denominated bonds on the island, the China Securities Journal reported Wednesday, without identifying its source. BoComm is said to be seeking to issue 1.2 billion yuan (US$196.98 million) of the so-called baodao bonds while Agricultural Bank is reportedly eyeing a 1.5 billion yuan sale.
China seen overtaking US as top oil user in 2030
China will replace the United States as the world’s biggest consumer of oil by 2030, Xinhua reported on Wednesday, citing a report by the International Energy Agency (IEA). The IEA forecast that the price of crude oil will hit US$128 per barrel by 2035 as global oil demand expands to 101 million barrels a day and global production of conventional crude oil from all existing fields falls to 65 million barrels a day. China is projected to record the fastest growth in renewable power capacity, surpassing the combined new capacity of the European Union, the US and Japan.
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