Back on the 7th August, broker/investment bank Guotai Junan (1788 HK) (GJI) announced a pre-conditional (SASAC/NDRC) Scheme at HK$3/share, a 44.2% premium to last close, from Guotai Haitong (2611 HK).

The pre-cons were satisfied uncommonly quick on the 30th October. Vote risk is low. There are some quirky Scheme vote-blocking %s.

The Scheme Document is now out, with a 30th November Court Meeting, and expected payment by the the11th February (later than expected). The IFA (Altus) concluded “fair and reasonable“.

On the 20th May 2026, China Travel (308 HK) announced the proposed spin-off, via an in-specie distribution, of HKM Culture and Tourism on the HKEx. The market response was largely “meh”.

HKM Culture and Tourism covers visa documentation, cross-border transportation, and hotels (HK, Macau & Beijing). The rump comprises scenic destinations, theme parks, and select integrated destination resorts.

The record date for the in-specie distribution is the 20th November. I’m not convinced I’d want to own either stock.

SF Fengtai, SF REIT (2191 HK)‘s largest shareholder (with 36.61%), and a wholly-owned subsidiary of SF Holding (6936 HK), has agreed to buy SF REIT’s entire operating property company for HK$2,6bn.

Once completed, SF REIT will pay unitholders HK$3.28/unit (via special + interim distributions) - a 22.3% premium to undisturbed - then liquidate and delist.

China Orient, with 20.28% of shares out, is supportive. This may potentially wrap up late 1Q27.

Back on the 11th September 2025, Evergrande Property Services (6666 HK) (EPS) announced that liquidators for Evergrande (3333 HK) had been fielding non-binding Offers for Evergrande’s 51.016% stake in EPS.

EPS announced on the 14th April, Evergrande had entered into a 30 day exclusivity period with a mystery buyer. Following HKEx updates, “exclusive negotiations” expired on the 27th October.

This morning, EPS announced private asset manager PAG had entered into a SPA to acquire Evergrande’s 51.016% stake. Price? HK$0.8359/share, a 29.5% discount to last close.

On the 8th September 2026, Public Bank (PBK MK) made a HK$2.50/share Scheme Offer for 73.23%-held Public Financial (626 HK), a 61.29% premium to last close

In Public Financial (626 HK): HK$2.50/Share Will Get This Offer Over The Line, I expected the transaction to be fast-tracked in ~four months, ahead of the 31st March 2027 long-stop.

The Scheme Document is now out, with a 23rd November Scheme Meeting, and expected payment by the the 16th December. The IFA (Somerley) concluded “fair and reasonable“.

Hong Kong is in the midst of a clutch of massively ramped up stocks; only for massive takeunders to unfold as controlling shareholders exit.

Despite repeated messages to the HKEx, its responses have consistently been: “the subject matter is outside our power and scope of regulation. Therefore we will not take any further action“.

Non-Surgical medical aesthetic treatment play Fameglow (3774 HK) is currently suspended pursuant to the Takeovers Code. Fameglow is up 17x/116x (!) in the past one/five years. Expect another takeunder.

After Guotai Haitong Securities (2611 HK) merged early last year (GJS/Haitong Merger Musings), becoming China’s largest brokerage, it has been streamlining/cleaning house with its majority-held subsidiaries.

It is currently seeking to take 73.92%-held Guotai Junan (1788 HK) private. Now Shanghai SASAC-backed Shanghai International Group (SIG) is proposing to take control of 85%-held Haitong Unitrust (1905 HK).

The proposal from SIG, Guotai Haitong’s largest shareholder, is via a Partial Offer. Terms are fair. The key risk, as it applies to PRC reg approvals, is one of timing.

Following a slow moving car crash, the takeover for Changhong Jiahua (3991 HK) finally busted on the 20th September 2026 after failing to secure provincial DRC and DoC approvals.

At the time, Changhong was trading at HK$0.57/share versus the undisturbed price of HK$0.92/share. That in and of itself appeared attractive.

The board has now resumed paying interim dividends. Sitting on a 10% yield - 18th December payment. That yield jumps to 19% should a final dividend be paid next June.

After 18 months of suspension, Xin Yuan Enterprises (1748 HK), a maritime logistics and vessel chartering operator, has announced a voluntary pre-conditional Offer.

Liu Jichun, holding 20.71%, is offering HK$2.21/share. The price is final. The offer is conditional on a 50% acceptance hurdle. Presumably, founder Chen Maochun (26.36%) will not tender.

The pre-con is that shares resume trading on the 30th October. This may be waived. It’s a shrewd move by Liu.

PRC-Focused financial leasing play Haitong Unitrust International Financial Leasing (1905 HK) (HUIFL) is suspended pursuant to Hong Kong Code on Takeovers and Mergers.

Expect a privatisation Offer from Guotai Haitong Securities (2611 HK), currently holding an 85% stake. Guotai Haitong is presently in the midst of taking Guotai Junan International (1788 HK) private.

As HUIFL is PRC-incorporated, this Offer may be structured as a Merger by Absorption, involving a Scheme-like vote for independent H-shareholders. There may, or may not be, a tendering condition.

In NWD (17 HK): Edging Towards A Bailout, I mentioned New World Development (17 HK) was reportedly in negotiations with the Hong Kong Airport Authority on its 11 Skies project.

In its FY26 results, ahead of the national holiday, NWD posted an HK$18.3bn writedown as part of an early termination agreement of the project with the AAHK.

NWD was expected to pay rent on 11 Skies of at least HK$1.8bn/annum from 2028 through to 2066; therefore, there is some consolation here from the termination.

In the past two months, Lotus Horizon (6063 HK), WK (2535 HK), and Superland (368 HK) have been subject to conditional/unconditional (massive) takeunders. Expect the same for KFM (3816 HK).

Now fellow contractor/manufacturer, Trio Industrial Electronics Group (1710 HK), is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~567% since June-end.

Not a great look for the exchange. I’ve reached out to the HKEx to get their read.

A consortium comprising CSI Properties (497 HK), Asia Standard International Group (129 HK), and Cheung Chung-kiu, applied to the Town Planning Board to redevelop “Harbourside HQ” into two residential towers.

The Planning Department previously indicated no objection to the application. However, Hong Kong’s Town Planning Board rejected the proposal last Friday.

Vacancy rates for HK commercial properties remain elevated. 25% for Harbourside HQ. Yet, rezoning sets a precedent that cannot easily be reversed (as and) when economic conditions rebound.

On the 17th July, Hung Hon Man, Get Nice (64 HK)‘s chairman (& founder) offered HK$4/share, comprising a HK$2 consideration + HK$2 special dividend. Terms appear not to be final.

Terms are also low-balled. A 17.6% premium to undisturbed. And a 62.8% discount to NAV. However, minorities are indifferent when perusing past AGM voting.

The Scheme Booklet is now out, with a 26th October Scheme Meeting, and expected payment on the 16th November. The IFA (Veda Capital) concluded “fair and reasonable“.

Goodbaby International (1086 HK), a maker of juvenile products (strollers/pushchairs, child car seats), has announced an Offer, by way of a Scheme, from founder/chairman Song Zhenghuan.

Song is Offering HK$1.50/share, a 38.9% premium to last close. And a 53.06% premium to the 10-day VWAP (possible news leakage?).

The Offer price is final. Dividends will be netted. This transaction should be wrapped up in around four months, ahead of the 24th March 2027 long-stop.

Prosus NV (PRX NA) is still coming up “cheap” on my monitor versus Tencent (700 HK).

Preceding my comments on Prosus/Tencent/Naspers (NPN SJ) are the current setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Embattled property developer New World Development (17 HK) has proposed the spin-off and separate listing of a REIT on the Shanghai Stock Exchange.

The spin-off comprises the mixed-use property (comprising Shanghai K11 Art Mall and Shanghai K11 ATELIER NWT), one of NWD flagship PRC assets.

Trading at a trailing P/B 0.074x. That pretty much says it all. The impact from the spin-off, if completed, will be minimal. This remains an avoid.

Cloudbreak Pharma (2592 HK), a clinical-stage eye-disease drug developer, was listed on the HKEx on the 3rd July 2025 at HK$10.10/share, and promptly fell 39% on debut.

The downward trend continued. Shares were suspended by the SFC on the 10th September 2026, with a last trading price of HK$1.19/share, down 88.2% from IPO.

The SFC said it has “serious concerns“ that Cloudbreak’s 2025 IPO “may have been rigged to create an artificial impression of demand“ for its shares.

Cloudbreak, to me, is a famous Fijian surfing break, hence the somewhat lame title. Sorry about that.

FWIW, one of the eyedrops Cloudbreak is seeking to perfect for pterygiums, are sometimes called “surfer’s eyes” .....

Cloudbreak is suspended by the SFC, so there is nothing to do right now.

This insight is somewhat of a vanity project just to get a handle on what happened here.

Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder.

Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.

Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.