HK Stock Market Move | CHINA TRAVEL HK(00308) rose more than 9% in early trading. The company suggests physical distribution of tourism real estate industry, which is expected to reduce the drag of non-core assets.

CHINA TRAVEL HK (00308) surged over 9% in early trading, up 7.84% as of press time, at 1.65 Hong Kong dollars, with a turnover of 35.39 million Hong Kong dollars. On the news front, CHINA TRAVEL HK announced that it proposes to distribute its tourism real estate business in kind, with shareholders having the option to receive 1 share of a private company per share or cash of 0.336 Hong Kong dollars per share. After completion, the company will retain its tourism scenic spots and related businesses, including theme parks, natural and cultural scenic destinations, and tourist site support services; tourism documents and related businesses; and hotel and passenger transport businesses. The company stated that after the distribution, the group will reduce the drag of non-core assets, improve profit expectations, and further optimize operating models, focusing funds and management resources on high-return tourism operations. The directors believe that this move is in the overall interest of the company and shareholders.