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Country Garden Services plummeted more than 16% in Hong Kong to hit $7.53 at one point, marking a new low in nearly nine months.
Li Changjiang, President and Executive Director of Country Garden Services, reduced his stake in the company in two tranches totaling 3.2279 million shares last Wednesday (July 19th), cashing in more than HK$28 million. Upon completion, his stake in the company was reduced from 0.15% to 0.11%.
JP Morgan downgraded Coutry Garden Services from Overweight to Underweight and slashed the target price from HK$22 to HK$6.7.
Before the Chinese government introduces more supportive measures for the real estate sector, market concerns for private developers’ liquidity situation will remain, the bank said.
The guidelines on transforming underdeveloped areas in megacities, approved by the State Council last Friday, failed to excite the market as the policy is not concrete enough and didn’t specify details such as cash compensation, sized and funding supports, it said.
