Companies to Watch: CDL’s Divestment in Sincere Property
Real estate group City Developments is divesting its majority stake in Chongqing Sincere Yuanchuang Industry, in the wake of the Chinese developer’s cash troubles. CDL acquired a majority stake in Sincere last April, but the pandemic and China’s “three red lines” policy increased liquidity constraints at the unit. Vijay Natarajan, Analyst, RHB Group shares the possible risk exposures that CDL needs to pay attention to in China's real estate sector and their funds reallocation after writing down almost all of its S$1.92 billion investment in Chongqing Sincere. See omnystudio.com/listener for privacy information.