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Shenzhen Investment ( (HK:0604) ) has provided an announcement.
Shenzhen Investment has entered into a new term loan facility agreement with a bank for up to RMB 800 million, or its equivalent in Hong Kong dollars, with a tenor of up to three years. The financing adds to the group’s funding resources but is subject to stringent covenants linked to its ownership structure and shareholder support.
Under the agreement, an event of default will occur if Shum Yip ceases to own at least 35% of Shenzhen Investment, ceases to be its single largest shareholder or to control the board, or if Shum Yip is no longer at least 51% owned by the Shenzhen Municipal Government. A further default trigger arises if the aggregate principal of shareholder loans to the group falls below HK$14 billion, underscoring lenders’ reliance on continued state-linked backing and substantial shareholder funding.
The company disclosed that Shum Yip currently holds about 63.19% of its issued share capital on an aggregated basis, and remains wholly owned by the Shenzhen Municipal Government. It also confirmed that existing shareholder loans already meet the minimum HK$14 billion threshold, signalling that the facility’s conditions are currently satisfied and reinforcing the group’s perceived credit support from its controlling shareholder.
The most recent analyst rating on (HK:0604) stock is a Hold with a HK$0.83 price target. To see the full list of analyst forecasts on Shenzhen Investment stock, see the HK:0604 Stock Forecast page.
More about Shenzhen Investment
Shenzhen Investment Limited is a Hong Kong-incorporated company active through its subsidiaries in property-related investments and development. The group operates under the control of majority shareholder Shum Yip Holdings, which is in turn wholly owned by the Shenzhen Municipal People’s Government, giving the company a strong Chinese state-backed background and influence.
Average Trading Volume: 9,620,290
Technical Sentiment Signal: Strong Sell
Current Market Cap: HK$6.59B
For detailed information about 0604 stock, go to TipRanks’ Stock Analysis page.