(Yicai Global) Sept. 22 -- R&F Properties’ share price surged after the Chinese developer raised as much as USD2.5 billion to ease its liquidity shortage by selling a property management subsidiary and securing a loan from its chairman and chief executive officer, both big shareholders.

R&F Properties [HKG: 2777] closed over 12 percent higher yesterday at HKD4.81 (62 US cents), after the stock lost almost 34 percent over the previous five trading days, hitting a four-year low on Sept. 20. The Hong Kong Stock Exchange is closed today for a pubic holiday.

Country Garden Services Holdings said after the market close on Sept. 20 that it will buy Fuliang Global, R&F Property Services Group’s property management unit, for up to CNY10 billion (USD1.55 billion). R&F will also borrow HKD8 billion (USD1 billion) from Chairman Li Silian and CEO Zhang Li, who each own 46.5 percent of the company, to pay maturing short-terms debts over the next one or two months, it said yesterday.

R&F’s cash crunch has developed gradually since last year, when the Chinese government began to tighten financial policies on real estate companies. With the sale of Fuliang Global, a key asset in an up to USD700 million initial public offering that R&F Properties Services filed for in Hong Kong in April, R&F appears to have abandoned the listing plan in favor of raising cash.

R&F now expects to have enough cash to cover all of its short-term debts. The company will also consider buying back long-term bills after receiving the funds, it added.

Country Garden [HKG:6098] closed up 6.2 percent at HKD47.90 (USD6.15) yesterday, giving it a market value of HKD154.1 billion (USD19.8 billion).

Editor: Futura Costaglione