HK Stock Market Move | MIDEA REAL EST (03990) rose more than 10% in the afternoon, the company divest its main business of real estate development and explore new industry models.

Midea Real Estate (03990) surged over 10% in the afternoon, as of the time of writing, it was up 7.81% at HK$2.9 with a turnover of HK$5.6179 million. On the news front, on September 2, the company held a special shareholders' meeting where a restructuring plan was approved with 95% of the votes. The plan involves the equity restructuring of Midea Real Estate, planning to transfer the full ownership rights of the real estate development business from the listed company to the controlling shareholder. According to the plan, the cash consideration for the physical distribution business is set at HK$5.9 per share. Based on the closing price of HK$7.35 per share on the last trading day before ex-rights, the conversion ex-dividend benchmark price is calculated to be HK$1.45 per share. Haitong pointed out that the company will reorganize the group's real estate development business internally, with the business held by a private company, and then establish a private company group, followed by divesting the private company group from the group through the physical distribution of private company shares. If the restructuring is completed successfully, the group will build a business model of "development contract + property management services + asset operation + real estate technology", with no substantial change in business nature.