(Yicai Global) March 30 -- Ronshine China Holdings Ltd. responded to a report that "Ronshine is selling stakes in several projects in Jiangsu and Zhejiang."
Ronshined clarified that the real estate development projects in these two southeastern Chinese provinces are operating normally, with no sale in quantity contemplated. The company does not conceal any information it is obligated to disclose, financial newspaper STCN reported.
Ronshine is in sound condition, with a steady improvement in its performance, it said. The company still had cash and cash equivalents of CYN20.5 billion (USD3.2 billion) as of the end of last year. It boasts sound sales and has sufficient funds and good liquidity.
Ronshine is selling at least six real estate development projects in Nanjing, Jiangsu province and Hangzhou, Zhejiang province, mainly by means of stake sales or cooperative development, however, per the information the state media outlet ThePaper.cn obtained. Most of the projects allegedly for sale were bid on in 2016 when real estate developers scrambled for land in intense competition and some lots' prices were among the highest in their region.
Subsequent policy-driven market corrections have now exposed the boldest bidders in that era to liquidity vulnerabilities and so the assumption is that Ronshine is jettisoning its stake to salvage what it can before the crunch comes.