CK ASSET(HK:01113) Sou Hu Cai Jing·2025-08-01 03:45Core Viewpoint - The recent sale of 400 properties in the Greater Bay Area by Cheung Kong Holdings highlights a strategic exit from the mainland property market, capitalizing on historical land value appreciation while appealing to Hong Kong buyers with attractive pricing [1][5]. Group 1: Property Sales and Pricing Strategy - Cheung Kong Holdings is selling properties in the Greater Bay Area at prices that are significantly lower than comparable properties in Hong Kong, with total prices starting at 400,000 RMB, which is only enough for a 2-square-meter down payment in Hong Kong [1]. - The price drop of units in Huizhou Longpu Garden from 14,000 RMB to 8,632 RMB per square meter signals a retreat of capital from the mainland property market [1][3]. - The strategy of offering "discounted" prices is designed to create a sense of urgency among buyers, while still maintaining profit margins, as the actual transaction prices remain 15% higher than three years ago [3]. Group 2: Financial Maneuvering and Market Trends - Cheung Kong Holdings is conducting these sales exclusively in Hong Kong dollars, allowing the company to avoid risks associated with RMB depreciation and to channel Hong Kong capital into offshore accounts [5]. - The properties being sold were acquired during a period of low land prices around the time of the Hong Kong handover, and their current sale represents a culmination of 26 years of value appreciation [5]. - The capital generated from these sales is likely to be reinvested in stable utility sectors in the UK and the Netherlands, reflecting a strategic shift in investment focus [5][7]. Group 3: Broader Implications for Investors - The actions of Cheung Kong Holdings serve as a case study for investors, illustrating the importance of timing and strategic exits in capital markets, as the company has methodically exited the Chinese real estate market over the past decade [5][7]. - The ongoing sales and the associated pricing strategies reflect broader trends in the property market, where established players are recalibrating their positions in response to market fluctuations [7].