Shares of Soho China , a Beijing property developer, soared 15 percent Monday on their first day of trading in Hong Kong – the latest hot public stock offering that is creating a new class of Chinese real estate tycoons.
The spectacular debut of Soho, which values the company at $6 billion, comes at a time when stock prices in China are skyrocketing and some of the country’s biggest cities are being radically transformed by a huge building boom. Despite government efforts to curb real estate speculation in China, housing prices continue to rise, fueling even more construction, and also a frenzy of initial public stock offerings by big real estate companies. [Full Text]
[Image: Zhang Xin, a former Goldman Sachs investment banker, by Stephen Shaver from Bloomberg.]