For Ren Yuanlin, Yangzijiang Financial’s largest shareholder, the surge in interest has been a long time coming. For most of the last two years, the stock was buried in near-obscurity as investors didn’t want anything to do with the firm’s lending business in China, where it holds a vast swath of real estate as collateral for loans dished out to sole proprietors and small and medium businesses, including property developers.
The spin-off aims to chart a cleaner growth path, free of China’s real estate slump
Yangzijiang Financial Holding’s share price has more than doubled so far this year, easily outperforming Yangzijiang Shipbuilding and the benchmark Straits Times Index. So hot is the stock that it is trading nearly at parity with its net asset value for the first time since its debut on the Singapore Exchange (SGX) in April 2022.
