HK Stock Market Move | CHINA AOYUAN (03883) fell nearly 15%, the company introduced strategic investors, and the market is concerned that the company still faces the risk of debt restructuring.

China Aoyuan (03883) fell nearly 15%, as of the time of writing, down 12.45% to HK$0.232, with a turnover of HK$269.48 million. On the news front, China Aoyuan announced the introduction of a strategic investor, with founder Guo Ziwen's wholly-owned Ace Rise transferring 621 million shares of China Aoyuan to Multi Gold. Multi Gold will become the company's largest single shareholder, holding 16.48% of the shares, while Ace Rise's stake will decrease to 13.31%. It is reported that Multi Gold Group is a professional investment institution from the United Arab Emirates, with influential local families participating in its management structure. Sinolink International pointed out that China Aoyuan completed a overseas debt restructuring of about US$6.1 billion in March this year, including issuing new financing tools to replace debt. Although the default crisis has temporarily been averted, the overall property market is not performing well, and Aoyuan is still facing financial difficulties. Property sales revenue in the first half of this year decreased by 56.9%, with a total debt of approximately RMB 190.407 billion as of the end of June, equity deficit of RMB 1.772 billion, and short-term debt due within one year of RMB 53.409 billion. The market is concerned that the company may face a risk of a second debt restructuring.