China State Construction Engineering Corporation Limited

China State Construction Engineering Corporation Limited is a large Chinese construction enterprise listed on the Shanghai Stock Exchange (601668.SH). Its parent company is China State Construction Engineering Group Co., Ltd. (formerly China State Construction Engineering Corporation), and its real estate business is mainly operated by China Overseas Land & Investment Limited (COLI). At a roadshow presentation before China State Construction Engineering’s listing, then-chairman Sun Wenjie told institutional investors that after the listing the company would step up its support for COLI in several respects: first, by giving it ample decision-making authority, and second, by being able to provide financial support. According to an April 2010 report by The Economic Observer, the board of China State Construction Engineering approved in August 2009 a proposal to inject HK$5 billion of capital into China Overseas Holdings. According to a May 2010 report by Caixin Online, at the end of 2009, after receiving a HK$5 billion capital injection from its parent China State Construction Engineering, COLI’s net gearing ratio fell from 48.6% to 22.4%.

In the Hong Kong market, China State Construction Engineering has taken part in residential projects as a co-developer. According to a February 2019 report by Caixin Online, the mid-to-high-end residential project “Hongbi”, jointly developed by Country Garden Holdings Company Limited, the Hong Kong developer Wang On Group and China State Construction Engineering, officially went on sale on November 26, 2018; less than 20% of the units offered were sold on the first day, and nearly two months after launch only 87 of the first batch of 110 residential units offered had been sold.