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Hong Kong developer CK Asset sells Chengdu project for US$1b

[HONG KONG] CK Asset, founded by tycoon Li Ka-shing, said it had sold a residential and commercial development project in the South-west Chinese city of Chengdu for around US$1 billion.

The company expected an unaudited gain of HK$3.8 billion (S$678.9 million) from the disposal to a company jointly owned by Chinese property developers Yuzhou Group and Chengdu Ruizhuo Real Estate, it said in a filing on Thursday night.

CK Asset's shares gained as much as 1.6 per cent in early trading on Friday, outperforming the broader market, before retreating 0.2 per cent at midday. Yuzhou Group fell 1.5 per cent while Hang Seng Index eased 1.8 per cent.

In a separate statement, the Hong Kong developer said Li Ka-shing and company chairman Victor Li remain confident in the mainland China and Hong Kong markets, and it is the largest Hong Kong business in mainland China covering various industries.

It added the gains from the Chengdu disposal is on par with the HK$28 billion average annual income it made from property sales in the mainland in the past decade.

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Li Ka-shing has been criticised by some mainland media in the past for "exiting China" after pocketing lucrative profits.

REUTERS

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