Foreign funds take a fancy for Gree in Shenzhen-Hong Kong stock connect
Air conditioner maker in the limelight after Baoneng acquires 4pc stake in company
Gree Electric Appliances, China’s largest air conditioner maker, which is facing a potential hostile takeover from insurance conglomerate Baoneng Group, continued to be the top draw for foreign funds in the Shenzhen-Hong Kong stock connect.
The company’s shares gained 1.74 per cent to close at 26.33 yuan (HK$29.7) in Shenzhen, after plummeting to the 10 per cent daily limit on Monday amid speculation that Beijing would thwart Baoneng’s takeover attempt.
The Zhuhai-based white goods maker became the “favourite” Shenzhen-listed stock for foreign investors buying through the new stock connect and recorded northbound money inflows amounting to over 240 million yuan yesterday, according to the Hong Kong stock exchange.
Last Wednesday, Gree said Baoneng had become its third biggest shareholder with a 4.13 per cent stake. Baoneng had bought the shares between November 17 and 28, according to regulatory filings.
Dong Mingzhu, a well-known Chinese businesswoman and chief executive of Gree, reassured the public on Monday that the state-owned firm’s operation would not be affected by the capital market chaos.
“Gree, as a manufacturer, will leave itself untouched by the movements in capital markets,”Dong’s official social media account quoted her as saying. “If [ financial market players ] disrupt the operation of home-grown manufacturers, they will descend into sinners.”