New World rose nearly 7% on rumors that the Cheng family will inject 10 billion yuan as early as the end of the year

According to sources cited by Bloomberg, the controlling shareholder Zheng family is expected to inject HKD 10 billion into New World (00017.HK) by the end of this year and is looking for equity partners who can provide a similar amount.

It is reported that companies involved in the funding negotiations include Blackstone (BX.US) and CapitaLand Group, and the Zheng family's plans under discussion include the establishment of a joint venture to provide liquidity to New World. Negotiations are still ongoing, and the scale and structure of the deal may be adjusted.

Sources say that some potential investors involved in the negotiations have requested the Zheng family to use New World's equity as collateral to hedge potential risks or to require dividend returns on their equity investment. It is currently unclear whether the Zheng family will agree to any conditions.

New World's stock price opened flat today (1st) and rose in the afternoon after the news broke, reaching a high of HKD 7.3, closing at HKD 7.07, up 6.8%, with a trading volume of 38.2479 million shares, involving HKD 267 million