Core Viewpoint - Lishin International announced a significant sale involving the disposal of equity in the SPL property entity, indicating a strategic shift in its asset management approach [1][2]. Group 1: Transaction Details - Lishin Development's wholly-owned subsidiary will sell all issued shares of Surearn Profits to Jasmine Investment Development IV Limited for a total consideration of HKD 34.98 billion, plus the net value of Surearn Profits' liquid assets at the time of completion [1]. - The SPL property, located in Hong Kong's commercial center, has a total construction area of approximately 229,200 square meters, including various office floors and parking spaces [1]. - The expected net cash flow from the transaction is approximately HKD 2.4 billion, which will be used for general working capital of Lishin Development Group [2]. Group 2: Financial Impact - Upon completion of the sale, Lishin Garment Group is expected to incur a loss of approximately HKD 269 million, while Lishin Development Group anticipates a loss of about HKD 261 million [2]. - The transaction is subject to conditions including shareholder approvals, with meetings scheduled for December 21 and December 31, 2025 [2]. Group 3: Market Context - The acquisition by Jasmine Investment Development IV Limited is linked to JD.com's investment strategy in Hong Kong, focusing on integrating retail, logistics, and technology development [2]. - The Hong Kong market has seen increased activity in large transactions, with notable deals such as Alibaba and Ant Group's purchase of One Causeway Bay for approximately HKD 7 billion, marking the largest office transaction in five years [3]. - The overall market for large transactions in Hong Kong is recovering, driven by demand from financial institutions, tech giants, and private investors, indicating a return of both self-use and investment demand [4].

Core Viewpoint - Alibaba is reportedly planning to acquire the top 13 floors of the One Island East building in Causeway Bay for approximately HKD 7 billion, which would set a record for the largest single transaction of commercial property in Hong Kong this year [1][2]. Group 1: Transaction Details - The total area of the targeted floors is about 270,000 square feet, with a price per square foot of nearly HKD 26,000 [1]. - If the deal is finalized, it will not only set a record for 2023 but will also rank as the fourth largest commercial property transaction in Hong Kong's history [2]. - The One Island East building is a 24-story multi-purpose Grade A office building, with a total area of approximately 500,000 square feet, located in a prime commercial and entertainment area [2]. Group 2: Market Context - The Hong Kong office market has been experiencing rising vacancy rates and declining rental prices since 2025, influenced by high interest rates and a sluggish global economy [6]. - Recent reports indicate that the demand for Grade A office space in Hong Kong has begun to improve, with a narrowing decline in rental prices, suggesting a potential recovery in the market [6]. - In Q3 2025, the rental prices for Grade A offices decreased by 1.1%, a significant improvement compared to earlier quarters [6]. Group 3: Strategic Considerations - Alibaba's potential acquisition may be driven by the need to secure long-term office space, as the company currently leases multiple floors in Times Square, with leases expiring in 2028 [5]. - The transaction could also be seen as a strategic move to reduce ongoing rental expenses amid a challenging economic environment [6]. - The strengthening of the Renminbi and recent policy adjustments in Hong Kong may provide favorable conditions for mainland investors to acquire assets in the region [8].