Wharf seeks $1.29 billion to invest in China properties

The Hong Kong conglomerate announces a one-for-10 rights issue at a 31% discount to Thursday's closing price.

Wharf Holdings, a Hong Kong-listed conglomerate, plans to raise HK$10.05 billion $1.29 billion through a renounceable rights issue to fund its property investments in the Chinese mainland.

The company made the announcement two days after China's central bank hiked interest rates for the third time in only three months in an effort to curb the country's runaway inflation and growing asset bubble.

Fast-rising property prices have forced Chinese policymakers to come up with market-dampening measures since early last year. Last month, the authorities welcomed the new year with old resolutions continue to fight the forming of an asset bubble. Since then, the government has launched a property tax for the first...

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