Majority shareholder raises $222 million from Chinese Estates placement

Placement raises a few eyebrows.
The controlling shareholder of Hong Kong property developer Chinese Estates has raised HK$1.73 billion $222 million from a share placement that raised more than a few eyebrows with respect to the timing.

The CLSA-arranged sale comes on the back of several positive announcements from the company, including two on the same day the placement was launched February 15. The company also bought back shares in the market through a series of transactions last month û a move that typically signals management's belief that the share price is too low.

Given those developments, observers said, it seems odd the Lau family would want to trim its stake at this time.

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